Part I.

Enacts Article 26, the “Digital Asset Financial Act” (DAFA), to GS Chapter 53. Sets forth sixteen definitions in new GS 53-441(terms pertaining to DAFA), including digital asset custody services (the safekeeping or custody of digital assets on behalf of customers by a financial institution, including maintaining control over the digital assets and any associated cryptographic keys), staking (committing digital assets to a blockchain network to participate in the network's operations by validating transactions, proposing and attesting to blocks, and securing the network), staking rewards (any interest, yield, or other compensation earned by a customer through staking digital assets on a blockchain network), digital asset transaction services (services that facilitate the execution of digital asset purchase or sale transactions on behalf of a customer), and regulating authority (either, in the case of a State-chartered bank, the Commissioner of Banks or in the case of a State-organized credit union, the Administrator of Credit Unions).

Requires, in new GS 53-442, for financial institutions intending to offer digital asset custody services (Services) to notify the regulating authority in writing as described, at least 60 days prior to the financial institution’s commencement of custody services. Prevents a financial institution from offering Services in a fiduciary capacity unless it is authorized to exercise trust powers under State law. Direct the institution to exercise its fiduciary authority in line with all applicable fiduciary duties and standards, including those governing custodians, trustees, and agents under State law. Requires the regulating authority’s approval before the financial institution begins offering Services in a fiduciary capacity. Requires the financial institution to establish it has satisfied all requirements to exercise trust powers and that it has the necessary expertise, policies, and procedures in place to safely conduct Services as part of its applications and allows the regulating authority to condition or limit the scope of a financial institution’s authority to engage in Services, including by imposing supervisory conditions as described. Requires a financial institution that provides Services in a fiduciary capacity using a sub-custodian to provide notice to the regulating authority.

Directs that when a financial institution provides Services in a non-fiduciary capacity, it acts solely as a custodian for safekeeping purposes and does not exercise discretionary authority over the customer's digital assets. Instructs the financial institution that it may act only upon the written instructions of the customer, and cannot independently manage, transfer or dispose of the digital assets.

Requires entering into a customer agreement with disclosures, including that digital assets are not insured by the FDIC or the NCUA or any other federal or State deposit insurance or share insurance pool. Allows for digital assets to be pooled so long as the financial institution maintains accurate records identifying each customer’s interest in the digital assets. Requires a financial institution providing Services to at all times maintain control over a quantity of each type of digital asset in its custody that equals or exceeds the total quantity of that digital asset owed to customers or required to be held on behalf of customer. Clarifies that pooled assets do not relieve the financial institution of the requirement to individually account for and fully reserve each type of digital asset for the benefit of customers. Requires independent annual audits, as described.

Authorizes subcustody of digital assets in new GS 53-443, limited to one of the following three entities: (1) a bank charted under the laws of the State, another state, or the United States; (2) a special purpose depository institution chartered under the laws of another state; or (3) a money transmitter licensed under Article 16B of GS Chapter 53. Specifies that a customer does not have to separately consent to engagement of a subcustodian so long as it is disclosed in the customer’s custodial agreement. Instructs that use of a subcustodian does not relieve the financial institution of its custodial duties. Requires written subcustodial agreement between the financial institution and subcustodian delineating the rights and responsibilities of the financial institution and the subcustodian and requires compliance with GS 53-443. Requires the financial institution to ensure that the subcustodian maintains at least 100% of reserve of each digital asset type held in subcustody, as described. Limits the types of subcustodians that a financial institution can use to one that maintains insurance coverage sufficient to protect against the loss of digital assets due to cybersecurity breaches, theft, or other similar events. Requires the financial institution to ensure that the subcustodian's insurance remains in effect and adequate to cover the value of assets held in subcustody. Specifies that a financial institution must retain control and custody of the assets placed in subcustody and that those assets are included in the scope of the financial audit described in GS 53-442.

Requires, in new GS 53-444 (staking of digital assets) for financial institutions intending to offer staking to notify the regulating authority in writing as described, at least 60 days prior to the financial institution’s initiation of services. Directs a financial institution to provide a customer with a clear and conspicuous written disclosure of the terms and conditions of the staking program before initiating staking services, including the five listed disclosures pertaining to automatic staking and opt-outs, risks of staking, lockup periods, customer rights, and fees. Authorizes a financial institution to stake digital assets held in custody on its customers’ behalf, as described. Provides for staking in both a fiduciary and non-fiduciary capacity. Specifies that a digital asset that a financial institution stakes on behalf of a customer remains the property of the customer. Prohibits staked customer assets, and any staking rewards associated with those assets from being recorded as assets or liabilities on the financial institution's balance sheet. Requires the financial institution to ensure that staked assets are safeguarded and not subject to any lien, security interest, or claim of the financial institution's creditors. Prohibits a financial institution from acting to encumber, hypothecate, or otherwise use a customer's staked assets for any purpose except for facilitating staking on the relevant blockchain or distributed ledger and from exposing the assets to risk of loss except to the extent inherent in the normal operation of the staking process. Authorizes use of subcustodians to facilitate the staking of digital assets on behalf of its customers, as described. In addition to complying with the reserve requirements, requires a financial institution to ensure that a sufficient portion of each digital asset type remains unstaked or otherwise available to promptly meet customer withdrawal requests, subject to any staking lock-up or unbonding periods disclosed to the customer under the section’s disclosure requirement. Provides for staking rewards, yields, or other benefits earned directly from the staking of a customer’s digital assets to be provided directly to the customer, as described. Instructs that the financial institution's staking activities must be included within the scope of its independent annual audits under new GS 53-442. Requires the institution to maintain insurance, as described.

Requires, in new GS 53-445 (digital asset transaction (DAT) services [DATS]) for financial institutions intending to offer DATS to notify the regulating authority in writing as described, at least 60 days prior to the financial institution’s initiation of services. Authorizes a financial institution to engage in DATS in a fiduciary capacity, as described. Directs a financial institution to provide a customer with a clear and conspicuous written disclosure of the terms and conditions of its DATS, before or a that the time of a digital asset transaction, including the methodology or basis used to determine the execution price of the DAT, any spreads, fees, commissions, or other charges applicable to the transaction, and the expected timeline. Only authorizes DAT if the DAT is executed pursuant to the express instruction of the customer and the DAT is executed in the exercise of discretionary investment authority granted to the financial institution under the governing fiduciary instrument or other law. Requires a financial institution to only facilitate DATS with counterparties with are also authorized to engage in DATS. Authorizes financial institutions engaging in DATS to use subcustodians or third-party execution agents to execute transactions on behalf of its customers, as described. Requires a financial institution that purchases a digital asset to ensure that the asset is transferred into its custody as soon as commercially practicable after execution of the transaction and held in custody in accordance with the fiduciary standards established by the act. Provides for recordkeeping and oversight.

Requires a financial institution to comply with State and federal laws governing its digital asset services, including those listed, in GS 53-446. Requires the financial institution to establish and maintain an anti-money laundering program and cybersecurity program, as described. Provides for notice to regulating authorities of any cybersecurity incidents as soon as possible, as described. Requires detailed recordkeeping of the institution’s compliance efforts and for the institution to designate individuals responsible for overseeing these programs.

Prevents rehypothecation of digital assets in new GS 53-447. Makes unclaimed digital assets subject to the Unclaimed Property Act in new GS 53-448. Authorizes the State Banking Commission and Credit Union Commission (Commission) to adopt rules to implement, clarify, and enforce the requirements of the new article, as described, in new GS 53-449.

Authorizes, in new GS 53-450, the regulating authority to exercise its enforcement powers (including, corrective action orders, temporary emergency orders, cease and desist orders, suspension or revocation of digital asset service authority, or civil penalties) if it determines that the financial institution has done any of the following:

• Violated any provision of the article or rule adopted or order issued under it.
• Engaged in any unsafe or unsound practice in connection with its digital asset services.
• Operated in a manner that threatens the safety or security of a customer's digital assets.

Provides for hearing and appeal rights.

Effective when the act becomes law.

Adds digital asset, digital asset account, exercise of an act of ownership interest, keys, and qualified custodian to GS 116B-52 (definitions pertaining to escheats and abandoned property).

Specifies, in GS 116B-53, that the presumption of abandonment of digital of property applies, five years after the earliest of the following dates: the last exercise of an act of ownership interest by the apparent owner, a second consecutive communication from the holder to the apparent owner is returned to the holder as undeliverable to the apparent owner, or the holder discontinued communications to the apparent owner. Provides for tolling, as described.  

Requires, in GS 116B-59, the holder of property held in a digital asset account presumed abandoned with a value of $25 or more to send notice as described to the apparent owner not more than 120 days or less than 60 days before filing the report required by law. Authorizes a holder to authorize a third party to perform the duties required by GS 116B-59, but that the holder bears responsibility for failure to comply with the statute.

Makes conforming changes to GS 116B-60 (report of abandoned property).

Enacts GS 116B-61.1 (delivery of abandoned digital assets), requiring holders of property held in a digital asset account presumed abandoned to report the property to the State Treasurer, and to either transfer such assets to the State Treasurer or maintain the assets until they can be transferred under the conditions described. Authorizes the Treasurer to determine if the asset should be liquidated. Specifies that a holder that delivers digital assets or pays proceeds to the Treasurer in good faith is relieved of all liability arising after the delivery or payment with respect to the digital assets delivered or proceeds paid.

Provides for a minimum three-year holding period by the Treasurer or qualified custodian designated by the Treasurer in GS 116B-65 (public sale of abandoned property). Provides for claims by the apparent owner of the digital assets. Prevents the Treasurer from selling a digital asset for less than the prevailing market price or if it doesn’t have a prevailing market price, by any commercially reasonable method. Directs that, after the expiration of the three-year holding period, a person making a claim is entitled to receive the digital assets, if they still remain in the custody of the Treasurer, or the net proceeds received from a sale, less any fees and expenses incurred in the sale.

Effective on or after 18 months after the act becomes law.

Directs that holders are not required to report or deliver digital assets under Article 4 of GS Chapter 116B until the first reporting cycle beginning on or after 18 months after this act becomes law. Requires the Treasurer to designate a qualified custodian and issue reporting instructions for digital assets before this reporting cycle.

The initial report filed under GS 116B-60 for digital assets subject to GS 116B-53(c)(15a) must include all digital assets that would have been presumed abandoned during the 10-year period immediately preceding the effective date of the above changes to GS Chapter 116B, as if GS 116B-53(c)(15a) had been in effect during that period.

Part II.

Enacts Article 27, the “NC Stablecoin Act”, to GS Chapter 53. Sets forth thirteen definitions pertaining to new Article 27 in GS 53-462, including payment stablecoin (digital asset (i) that is designed or marketed to be used as a means of payment or settlement, (ii) the issuer of which undertakes to convert, redeem, or repurchase for a fixed amount of monetary value, and (iii) that is not legal tender, a deposit, or a security registered under federal securities laws), permitted payment stablecoin issuer (licensed stablecoin issuer that is licensed or authorized under new Article 27, or a federally qualified payment stablecoin issuer chartered or licensed pursuant to the GENIUS Act), GENIUS Act (The Guiding and Establishing National Innovation for U.S. Stablecoins Act, Pub. L. No. 119-27, as amended).

Prohibits a person from issuing, circulating, offering or redeeming a payment stablecoin in the State unless the person is a permitted stablecoin issuer in new GS 53-463. Requires a person with a consolidated total outstanding issuance of payment stablecoins of not more than $10 billion who seeks to issue a payment stablecoin in this State to obtain a license as a stablecoin issuer from the NC Commissioner of Banks (Commissioner) unless the person is otherwise authorized to issue a payment stablecoin. Allows the Commissioner to authorize a trust company chartered in this State to issue payment stablecoins without obtaining a license under new Article 27 if the trust company submits an application to expand its business activities to include the issuance of payment stablecoins. Requires a State trust company to comply, on a continuing basis, with every operational, reserve, disclosure, redemption, and consumer protection requirement and the rules adopted under new Article 27 as though it were a licensed stablecoin issuer. Provides for periodic reporting to the Commissioner and for examinations issued by the Commissioner.

Authorizes a State qualified payment stablecoin issuer licensed by and subject to supervision of another state payment stablecoin regulator that has filed a current certification of substantial similarity under the GENIUS Act to issue payment stablecoins in this State without obtaining a separate license, so long as the issuer gives written notice to the Commissioner and complies with new Article 27 and with the State consumer protection laws.

Provides for reciprocity for state qualified insurers licensed by and subject to supervision of another state payment stablecoin regulator, as described.

Specifies that a State chartered insured depository institution or State chartered insured credit union may issue payment stablecoins only through a subsidiary that is a licensed stablecoin issuer under new Article 27 unless the institution obtains direct issuance approval, as described. Clarifies that GS 53-463 does not relieve an institution or its subsidiary of any requirement imposed by its primary federal banking regulator or limits the Commissioner's authority to enforce State consumer protection laws pursuant to the GENIUS Act.

Prohibits an entity organized under the laws of a foreign country (“foreign entity”) from offering or issuing payment stablecoins to persons in this State unless either of the following two things apply: (1) the foreign entity has incorporated or organized a subsidiary or affiliate in the United States and that subsidiary or affiliate has obtained either a provisional license issued under GS 53-463 or a full license as a licensed stablecoin issuer under new Article 26 and has a principal office in the United States; or (2) the entity is registered with the Office of the Comptroller of the Currency pursuant to the GENIUS Act and the Secretary of the Treasury has determined that the entity's home country regulatory framework is comparable. Clarifies that the principal office cannot be located at an individual's home or residence. Provides for a provisional license with expedited review, as described. Requires the Commission to provide technical assistance, including pre-filing meetings and published guidance to assist foreign entities in understanding new Article 27. Authorizes the Commission to grant a transitional exemption from this subsection to a foreign entity, not exceeding 12 months, solely to facilitate orderly compliance or to wind down.

Requires the Commissioner, in new GS 53-464 to (1) administer a licensing program for payment stablecoin issuers, including conducting oversight and issuing orders to implement the article and (2) to file an annual certification similarity required by the GENIUS Act and maintain objective criteria for that certification. Creates three categories of eligible licensure applicants: (1) a corporation or limited liability company organized under the laws of any state or of the United States that is neither an insured depository institution nor an insured credit union, (2) an insured depository institution or insured credit union chartered in this State, and (3) a US subsidiary or affiliate of a foreign organized entity that meets the requires pertaining to foreign entities, set forth above. Authorizes the Commissioner to participate in the Nationwide Mortgage Licensing System and Registry also known as the Nationwide Multistate Licensing System and Registry, including the State Examination System and any other electronic or successor systems developed and maintained by the Conference of State Bank Supervisors for the licensing, registration, and supervision of persons under new Article 27. Specifies that an application can only be approved by the Commission if it finds that all of the listed six standards for approval have been met by the applicant, including capital and liquidity requirements, reserve requirements, the applicant’s personnel have the described competence and integrity and are not on the US’s Specially Designated Nationals and Blocked Persons List or subject to Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism, and the licensure will not adversely affect the safety and soundness of the financial system of this State. Lists seven ongoing obligations of licensees including continuous compliance with new Article 27 and its rules, monthly certificates as described, described notice to the Commissioner, and an annual examination of reserves by a registered public accounting firm and provide the report to the Commissioner within 10 days of receipt. Provides for licensing application, fees, quarterly reports by licensees, annual renewals, late renewals, and annual assessments under the fee schedule provided.

Limits the activities of a licensed stablecoin issuer to the following six things:

1. Issuing payment stablecoins in exchange for United States dollars or other eligible reserve assets.
2. Redeeming payment stablecoins.
3. Purchasing, selling, holding, and safeguarding eligible reserve assets backing the payment stablecoins.
4. Providing custodial or safekeeping services for payment stablecoins or the associated cryptographic keys.
5. If the issuer is a subsidiary of an insured depository institution or insured credit union, providing custodial or safekeeping services for reserve assets on behalf of the parent institution in connection with the stablecoin program.
6. Any other activity the Commissioner expressly authorizes in writing as directly incidental to the issuance or redemption of payment stablecoins.

Prevents a licensed stablecoin issue from doing any of the following four things:

• Engage in commercial lending, securities dealing, or derivatives dealing using any reserve asset or the proceeds thereof.
• Engage in proprietary trading of any asset that is not an eligible reserve asset.
• Purchase or hold, for its own account, any security or instrument issued by an affiliate except on market terms permitted by the Commissioner.
• Condition the availability of any product or service on a customer's purchase, holding, or use of a payment stablecoin.

Sets forth reserve requirements. Requires the licensee to monitor its assets daily. Provides for notice to the Commissioner if the assets fall below the minimum requires and requires the licensee to restore full coverage without delay. Prohibits a licensee from pledging, hypothecating, lending, or otherwise encumbering any reserve asset, except as provided in new Article 27. Sets forth five redemption obligations, including public and conspicuous disclosure of the licensee’s redemption policy and fees, a bar on imposing a minimum redemption threshold, and authorization for the license to request that the Commissioner authorize a temporary extension to the redemption period to facilitate orderly liquidation if a significant market stress or a redemption spike, as defined by rule, occurs.

Provides for custody, segregation and priority of reserves as described. Provides for monthly reports by licensee, certifications attesting to the sufficiency of its reserve assets filed with the Commissioner, annual examinations conducted by licensee, as described. Authorizes the Commission to require additional reports. 

Requires licensees to comply with any applicable federal laws under GS 53-466. Requires a licensee to comply with federal laws listed in GS 53-467 pertaining to money laundering and the Bank Secrecy Act. Requires the financial institution to establish and maintain an anti-money laundering program and customer identification program, as described. Provides for notice to the Commissioner of any federal enforcement action not later than five business days after the licensee receives the notice of enforcement, as described. Requires detailed recordkeeping of the institution’s compliance efforts as described. Specifies that a licensed stablecoin issuer is not required to obtain a State money transmitter license with respect to activities conducted in compliance with new Article 27.

Requires, in new GS 53-468, for the Commission to conduct a full scope examination of a licensee at least once every 24 months. Authorizes the Commission to examine any licensee at any time but cannot conduct more than two examinations in any 12-month period. Requires the examinations to address seven issues, including the licensee’s financial condition, compliance with Article 27 and federal law, corporate governance and internal controls, IT and cyber security safeguards, anti-money laundering, sanctions, and consumer protection programs, and any other factor addressing safety, soundness, or consumer protection. Designates applications, information, reports, and other confidential supervisory information as nonpublic records and that are required to be kept confidential, except as provided by Article 27. Provides for an annual Commissioner certification under the GENIUS Act to the Secretary of the Treasury and the Comptroller of the Currency. Requires a licensee to maintain complete books, records, and digital asset logs of its payment stablecoin business for not less than five years, or for a longer period if required by federal regulation, and to produce those records to the Commissioner upon request, as described. Specifies that licenses issued under Article 27 are not assignable without the Commissioner’s approval, as described. Provides for joint or coordinated Commissioner examinations.

Authorizes, in new GS 53-469, for the Commissioner to exercise its enforcement powers (including, cease and desist orders, licenses suspension or revocation, restitution or disgorgement, removal and prohibition of individuals, imposing a receivership or conservatorship or civil penalties, criminal penalties for unlicensed activities, injunctive relief) to protect payment stablecoin holders and the public. Provides for notice of enforcement, except for summary cease and desist orders. Provides judicial enforcement, as described. Provides for hearing and appeal rights, consent orders and criminal referrals. Clarifies that these provisions do not create a private right of action or limit any existing right of action under other laws.

Authorizes the Commissioner to enter into memoranda of understanding with any federal agency and conduct joint, alternate, or coordinated examinations and enforcement actions pursuant to Article 27. Requires licensees to also comply with federal interoperability standards. Directs that if a conflict arises between Article 27 and federal law, the federal law prevails to the minimum extent of the conflict. Instructs the Commission to apply and interpret Article 27 so that its requirements meet or exceed the minimum standards established under federal law for payment stablecoin issuers at all times.

Provides the Commission with rulemaking authority in new GS 53-471. Allows the Commission to temporarily waive or suspend its requirements if a national disaster or other national, regional, State, or local emergency occurs. Requires the Commissioner to provide a semi-annual report to the Commission on the status of all licenses issued, examinations conducted, and enforcement actions taken under new Article 27 during the reporting period.

Effective the earlier of January 18, 2027, or 120 days after the date on which the primary federal payment stablecoin regulators issue any final regulations implementing the GENIUS Act. Directs the Commissioner to notify the Revisor of the issuance date of those regulations.

Specifies that not less than six months after the effective date of this Part, the Commission must upon the recommendation of the Commissioner of Banks, adopt rules addressing at a minimum the following: application procedures, capital and liquidity standards, detailed reserve asset requirements, reporting formats, and any other matter that this act assigns to the Commission for specification. Directs the Commissioner to file its first certification within twelve months after Part II’s effective date. Instructs a foreign entity that, on the effective date of this Part, issues a payment stablecoin accessible by residents of this State and that does not meet the requirements of GS 53-463 to, not later than 12 months after that date, become a permitted payment stablecoin issuer or to cease offering its payment stablecoin in this State and shall provide holders of the payment stablecoin notice of their redemption rights.

Part III.

Contains a severability clause.