Breakthrough: North Carolina House Passes State Crypto Investment Bill
Significant news for the cryptocurrency world emerges from North Carolina. The state’s House of Representatives has taken a major step, passing a bill that could allow state government funds to be invested directly into approved cryptocurrencies. This move signals growing interest among state-level entities in exploring digital assets as part of their investment portfolios.
North Carolina Crypto: House Approves Digital Assets Investment
On April 30, the North Carolina House passed the Digital Assets Investment Act, known as House Bill 92. The vote was 71 to 44, sending the bill forward to the Senate. This legislation, introduced by Republican House Speaker Destin Hall, aims to empower the state treasurer with the ability to allocate a portion of state investments into designated digital assets.
Understanding the State Crypto Investment Proposal
House Bill 92 outlines specific conditions for any potential state crypto investment. Key points include:
- An investment limit of 5% of the state’s total investment funds can be placed into approved digital assets.
- Investments are contingent upon obtaining an independent third-party assessment.
- This assessment must confirm secure custody solutions, robust risk oversight, and compliance with regulatory standards.
- Recent amendments also allow the treasurer to study the feasibility of allowing retirement and deferred compensation plan members to invest in digital assets held as exchange-traded products (ETPs).
This cautious approach emphasizes security and compliance before any government crypto funds are deployed.
Related Legislation and Future Authority Over Digital Assets Investment
Alongside HB 92, the House also passed the State Investment Modernization Act (HB 506) with overwhelming support (110-3). This related bill proposes creating the North Carolina Investment Authority (NCIA) to assume investment management duties currently held by the treasurer. If HB 506 becomes law, the authority to invest in digital assets would transfer to the NCIA. The NCIA’s board would then need to approve any crypto investments based on the required third-party assessments.
North Carolina’s Place in State-Level Crypto Legislation
North Carolina’s passage of HB 92 positions it prominently in the emerging race among U.S. states to approve legislation allowing government entities to invest in cryptocurrencies. Currently, North Carolina is second only to Arizona in this legislative effort. Arizona’s House and Senate have already approved two separate bills (SB 1025 and SB 1373) related to establishing a state crypto reserve, which are now awaiting the governor’s decision. This indicates a growing trend of states exploring digital assets within their investment strategies.
Conclusion
The passage of the Digital Assets Investment Act in the North Carolina House marks a significant step towards potentially including cryptocurrencies in the state’s investment portfolio. While the bill still needs Senate approval, it reflects increasing governmental consideration of digital assets. The accompanying bill to create the NCIA also suggests a potential shift in how state investments, including future digital assets investment, will be managed. As crypto legislation progresses across states like North Carolina and Arizona, it highlights a changing landscape for government crypto funds and state investment strategies.
