North Carolina's Bold Move: State Treasurer Empowered to Invest in Crypto

The North Carolina House has passed House Bill 92, known as the NC Digital Assets Investments Act, granting the state treasurer the authority to invest in digital assets such as Bitcoin. This move aims to diversify the state's investment portfolio and potentially enhance returns for public funds. The bill sets stringent criteria for eligible investments, including a minimum average market capitalization of $750 billion over the past twelve months, ensuring that only established digital assets are considered.

The legislation, co-sponsored by House Speaker Destin Hall and Representative Steve Ross, reflects a growing trend among U.S. states to explore cryptocurrency investments as a means to bolster public finances. Hall emphasized that this initiative positions North Carolina as a leader in technological innovation and could generate positive yields for the state's investment fund. However, the bill has faced opposition from groups like the State Employees Association of North Carolina, expressing concerns over the volatility of digital assets and the potential risks to pension funds.

Despite these concerns, proponents argue that the bill provides a balanced approach by limiting investments to exchange-traded products and capping exposure to 10% of the fund's balance. Additionally, the legislation mandates secure custody solutions for digital assets, including encrypted environments and regular security audits, to mitigate potential risks. This cautious strategy aims to protect public funds while exploring the benefits of digital asset investments.

North Carolina's Evolving Stance on Crypto Legislation

The passage of HB 92 is not an isolated event but rather the latest in a series of legislative efforts that highlight North Carolina’s evolving stance on cryptocurrency. In recent years, lawmakers introduced companion bills in the House and Senate aimed at incorporating digital assets into the state’s retirement system—an early indication of bipartisan interest in crypto as part of long-term public finance strategies.

In parallel with Florida, North Carolina has also proposed the inclusion of Bitcoin within state treasury reserves. These bold initiatives placed the state among a handful of U.S. jurisdictions actively considering cryptocurrency as a hedge or diversification tool. While such measures have faced regulatory scrutiny and varying degrees of public reception, they signal a shift in how state governments are rethinking asset management in the digital age.