The North Carolina House of Representatives has made a significant advancement in financial modernity by passing a bill that permits the state treasurer to invest public funds in approved cryptocurrencies. The legislation, known as the Digital Assets Investment Act (House Bill 92), was approved on April 30 with a vote of 71 to 44 and now heads to the Senate for further consideration.
Introduced by Republican House Speaker Destin Hall in February, the bill allows for the allocation of up to 5% of the state’s investments into designated digital assets. However, investments will only proceed after a thorough independent third-party assessment is conducted. This assessment must confirm that the crypto holdings are securely managed and that they comply with risk oversight and regulatory standards.
Additionally, recent amendments have introduced the potential for the treasurer to explore the option for participants in retirement and deferred compensation plans to invest in digital assets through exchange-traded products (ETPs).
On the same day, the House passed the State Investment Modernization Act (HB 506) with a broad consensus, voting 110 to 3. This legislation aims to establish the North Carolina Investment Authority (NCIA), which would take over the investment management responsibilities from the treasurer. If ultimately enacted, the power to invest in digital assets would shift to the NCIA, requiring approvals from its board based on the assessments of third-party entities for crypto investments.
Local news sources, including NC Newsline, have reported that Treasurer Brad Briner supports both bills, indicating a collaborative effort toward adapting the state’s investment strategies to the evolving landscape of digital finance.
North Carolina’s Position in the Crypto Legislative Landscape
In the broader context, North Carolina finds itself in a competitive position alongside states like Arizona, which has been more proactive in passing crypto-related legislation. Arizona’s House has recently approved two bills (SB 1025 and SB 1373) focused on establishing a state crypto reserve, setting it apart as a leader in this area.
As states across the U.S. continue to navigate the integration of cryptocurrencies into their financial frameworks, North Carolina’s legislative moves signal a growing recognition of the potential benefits and risks of digital assets in public investment policy.
