North Carolina Introduces Bill to Invest in Bitcoin and Digital Assets

The state of North Carolina has become the latest to introduce a bill allowing the investment of public funds in digital assets like Bitcoin (BTC). 

House Bill 92, also known as the “Digital Assets Investments Act,” was introduced on Monday. The bill is sponsored by Representative Destin Hall, along with Representatives Mark Brody and Steve Ross.

North Carolina Pushes Bitcoin Bill

The bill grants North Carolina’s State Treasurer the authority to allocate state funds to digital assets while adhering to strict security, management, and oversight criteria.

“Investing in digital assets like Bitcoin not only has the potential to generate positive yields for our state investment fund but also positions North Carolina as a leader in technological adoption & innovation,” Hall said in a statement.

The legislation defines “digital assets” as virtual currencies, cryptocurrencies, stablecoins, nonfungible tokens (NFTs), or any other digital assets that confer economic, proprietary, or access rights. 

“The average market capitalization of the digital assets over the preceding 12 months is at least seven hundred fifty billion dollars ($750,000,000,000), as determined by the State Treasurer using a commercially reasonable method,” the bill specifies.

Bitcoin is the only cryptocurrency meeting the bill’s $750 billion market capitalization threshold. As per BeInCrypto, Bitcoin’s market cap stands at $1.95 trillion. In contrast, Ethereum (ETH), the second-largest cryptocurrency, falls short at $327.57 billion.

Beyond direct investments, the bill permits the State Treasurer to invest in digital asset exchange-traded products (ETPs). These must be listed or authorized for listing on reputable exchanges such as the New York Stock Exchange (NYSE) or NASDAQ and comply with rigorous security standards.

The bill also places limits on investment exposure. The total amount allocated to digital assets cannot exceed 10% of the fund’s balance at the time of investment. 

Furthermore, the State Treasurer is authorized to invest in over 30 special funds, including retirement systems, health plans, and other designated funds, ensuring investments align with each fund’s specific purposes and needs.

“NC has ~$9.6 billion in Reserve funds, and has $127 billion in its retirement systems. This translates to an investible amount of ~$13.7 billion,” Bitcoin Laws revealed on X (formerly Twitter).

North Carolina is not alone in exploring Bitcoin investments. Florida has also introduced its second bill, House Bill 487, to allocate 10% of public funds to Bitcoin. 

Meanwhile, more than 20 states are actively working on similar Strategic Bitcoin Reserve legislation. Among these, Utah stands out as the most advanced. The bill has passed the state house and is now under consideration in the state senate. Arizona follows closely, with its bill having passed the committee.