North Carolina Moves Forward with State Cryptocurrency Investment
A significant step towards cryptocurrency adoption in North Carolina has been taken with the House of Representatives passing House Bill 92, the Digital Assets Investment Act. This bill, approved on April 30th by a vote of 71 to 44, grants the state treasurer the authority to invest up to 5% of public funds in pre-approved cryptocurrencies.
The legislation, introduced by Republican House Speaker Destin Hall, includes crucial safeguards. Before any investment can occur, an independent third-party assessment must confirm secure custody, robust risk oversight, and full regulatory compliance.
Further amendments expand the possibilities, allowing the treasurer to explore the feasibility of permitting state retirement and deferred compensation plan members to invest in cryptocurrencies through exchange-traded products (ETPs).
Concurrent with the Digital Assets Investment Act, the House also passed House Bill 506, the State Investment Modernization Act, with an overwhelming majority. This bill establishes the North Carolina Investment Authority (NCIA), transferring investment management responsibilities from the state treasurer to this new entity. Should both bills become law, the NCIA, guided by its board of directors and third-party assessments, will oversee any future cryptocurrency investments.
State Treasurer Brad Briner has publicly voiced his support for both bills, highlighting a collaborative approach to this innovative investment strategy. This development places North Carolina as a frontrunner among states actively exploring cryptocurrency integration into public finances, closely following Arizona’s progress.
Arizona’s Crypto Leadership
While North Carolina makes strides, Arizona maintains its leading position in state-level crypto legislation. Arizona has already passed similar bills in both its House and Senate, awaiting only the Governor’s signature. This continued push towards crypto adoption at the state level underscores a growing recognition of digital assets’ potential role in public finance and economic development.