North Carolina has joined the growing list of states considering public investments in digital assets like Bitcoin. A new bill, House Bill 92, titled the “Digital Assets Investments Act,” was introduced on Monday by Representative Destin Hall, alongside Representatives Mark Brody and Steve Ross. The proposed legislation aims to allow the state’s Treasurer to allocate public funds into digital assets under strict security and oversight guidelines.
The bill defines digital assets as virtual currencies, cryptocurrencies, stablecoins, nonfungible tokens (NFTs), and other digital assets that provide economic or access rights. To qualify for investment, the digital asset must have an average market capitalization of at least 750billionoverthepreceding12months.Currently,Bitcoinistheonlycryptocurrencymeetingthisthreshold,withamarketcapof750billionoverthepreceding12months.Currently,Bitcoinistheonlycryptocurrencymeetingthisthreshold,withamarketcapof1.95 trillion, far exceeding Ethereum’s $327.57 billion.
In addition to direct investments, the bill permits the State Treasurer to invest in digital asset exchange-traded products (ETPs) listed on reputable platforms like the New York Stock Exchange (NYSE) or NASDAQ. These investments must adhere to rigorous security standards. The legislation also caps digital asset investments at 10% of the fund’s balance at the time of investment, ensuring prudent risk management.
The bill extends its scope to over 30 special funds, including retirement systems and health plans, ensuring investments align with each fund’s specific objectives. With approximately 9.6billioninreservefundsand9.6billioninreservefundsand127 billion in retirement systems, North Carolina could potentially allocate up to $13.7 billion to digital assets.
North Carolina is not alone in this endeavor. Florida has also introduced a bill to allocate 10% of public funds to Bitcoin, while over 20 states are actively working on similar legislation. Utah and Arizona are leading the charge, with Utah’s bill already passing the state house and Arizona’s advancing through committee.
By embracing digital assets, North Carolina aims to position itself as a leader in technological innovation while potentially generating positive returns for its public funds. This move reflects a broader trend among states exploring the integration of cryptocurrencies into their financial
