North Carolina Proposes Bill For State Investment In Bitcoin ETPs
North Carolina Speaker Introduces Bill To Invest Funds In Bitcoin ETPs Government Introduced Investment In Digital AssetsNorth Carolina has taken significant steps towards digital asset investments. On February 10, Speaker of the House Destin Hall introduced the "NC Digital Assets Investments Act" (HB 92), a bill focusing on allowing the state treasurer to diversify public funds by investing in some qualified digital assets.Bitcoin Exchange-Traded Products (ETPs) As The Only Investment OptionAccording to the bill filed by North Carolina’s house speaker, investments must be limited to Bitcoin exchange-traded products (ETPs). To qualify for this investment, these digital assets must maintain an average market capitalization of at least USD 750 billion over the past 12 months. As of now, Bitcoin is the only cryptocurrency meeting this requirement.Additionally, the bill places a cap on investments and limits them to a maximum of 10% of any state fund’s balance at the time of investment.State Funds Included in the BillIf the bill passed, it would allow many state funds, including insurance funds, pensions, and veterans’ funds, to invest in Bitcoin ETPs. Legislators support this proposal while appealing that such investments could hedge against devaluation and inflation of the US dollar while providing potential returns for these funds.North Carolina as a Leader in InnovationDestin Hall highlights the potential benefits of this initiative, stating, “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 and innovation.”In a post on X (formerly Twitter), Hall also linked the bill to former President Donald Trump’s vision of a national Bitcoin stockpile, underscoring North Carolina’s efforts to lead at state level in digital asset investment.According to bill co-sponsor Mike Schietzelt, “Blockchain technology, decentralized finance, and other innovations in the crypto space will shape our future in many new ways. North Carolina is poised to capitalize on these emerging opportunities”.Growing National Interest in Crypto Investment LegislationThe introduction of HB 92 comes amid a wave of similar legislative proposals across the United States. Recently, 19 states have introduced bills related to crypto investments. While states such as Arizona and Utah have advanced such legislation beyond the House committee level, while others such as North Dakota, have rejected similar proposals.On February 7, Montana recently proposed HB 429, an act with an objective of creating a “state special revenue account” for investments in digital assets and precious metals. As more states explore crypto-related legislation, North Carolina’s move could further solidify the increasing trend of state-level digital asset investment policies.News sum-upNorth Carolina’s initiative to file the NC Digital Assets Investments Act marks a remarkable step toward integrating Bitcoin into state investment strategies. By permitting the treasurer to invest in Bitcoin ETPs, the bill seeks to position the state at the forefront of digital asset adoption while potentially generating returns for public funds. As more states explore such similar legislation, North Carolina's initiative highlights the rising recognition of cryptocurrency's role in modern financial systems. If passed, the bill could set an example for other states who were looking to diversify their investment portfolios with digital assets.