NC House Approves State Crypto Investment

North Carolina Advances State Cryptocurrency Investment

The North Carolina House of Representatives recently passed the Digital Assets Investment Act (House Bill 92), paving the way for the state treasurer to invest public funds in approved cryptocurrencies. The bill passed with a vote of 71 to 44 and now heads to the Senate for consideration.

Introduced by Republican House Speaker Destin Hall in February, HB 92 permits the treasurer to allocate up to 5% of state investments into designated digital assets. This investment, however, is contingent upon a third-party assessment verifying secure custody, risk management, and regulatory compliance.

Amendments and Related Legislation

Amendments to the bill allow exploration of permitting members of state retirement and deferred compensation plans to invest in cryptocurrencies through exchange-traded products (ETPs). Concurrently, the House passed the State Investment Modernization Act (HB 506) with an overwhelming 110 to 3 vote. This bill establishes the North Carolina Investment Authority (NCIA) to manage state investments, transferring the responsibility from the treasurer. Should both bills pass, the NCIA, after third-party assessments, would oversee crypto investments.

North Carolina Treasurer Brad Briner publicly supports both pieces of legislation.

Arizona Leads the Way

North Carolina follows Arizona in the legislative push for state-level cryptocurrency investment. Arizona has already passed similar bills in both its House and Senate, awaiting the governor's decision. This signifies a growing trend among states considering integrating digital assets into their financial strategies.

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Key Takeaways:

• North Carolina's House approves bill allowing state treasurer to invest in crypto.
• Bill allows for up to 5% of state investments to be allocated to approved cryptocurrencies.
• Third-party assessment required for security and compliance.
• Related bill creates NC Investment Authority to manage state investments, including any future crypto holdings.
• Arizona is currently ahead in the race to establish state-level crypto reserves.