NC moves toward cryptocurrency adoption with new bill for state investments in digital assets

North Carolina Speaker of the House Destin Hall, R-Cladwell, introduced cryptocurrency legislation on Monday that would enable the state to invest in digital assets like Bitcoin, potentially making North Carolina a leader in aligning with the latest finance technology.

The NC Digital Assets Investments Act would diversify the state’s investments by allowing the state treasurer to include digital assets in the state’s investment portfolio. Reps. Stephen Ross,  R-Alamance, Mark Brody, R-Union, and Mike Schietzelt, R-Wake, signed on as sponsors to HB92 .

“We are seeing a rapid shift towards embracing blockchain technology and digital assets across the United States,” said Hall. “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 & innovation. I am proud to sponsor this bill, and I thank my colleagues Representatives Ross and Brody for their work in previous sessions to set the stage for this bill now in 2025.”

According to a press release, key provisions of the bill include:

• Authorization for State Treasurer to Invest in Digital Assets: This provision allows the Treasurer to include digital assets in the state’s investment portfolio.
• Investment Requirements: Digital assets must be exchange-traded products with a minimum average market capitalization of $750 billion over the past twelve months, as verified by a commercially reasonable method determined by the State Treasurer.
• Investment Caps and Management: The bill outlines strict guidelines for the maximum investment allocation in digital assets and sets standards for their custody and investment management.
• Definitions and Standards: Clear definitions and standards are provided to ensure that only qualified digital assets are included.

Notably, at just under $2 trillion in total market capitalization, Bitcoin is the only cryptocurrency that meets the requirements spelled out in the bill. The next largest crypto-asset, Ethereum, clocks in at approximately $317 billion.

Legislators pointed to a variety of reasons to invest in digital assets, such as the U.S. dollar facing periods of inflation and devaluation, as well as enhance the potential returns of our portfolio.

 “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,” said Schietzelt.

Dan Spuller, Head of Industry Affairs at the Washington-based Blockchain Association and co-chair of the North Carolina Blockchain Initiative task force applauded House leaders for pushing the bill forward, noting previous legislation that aligned with the latest effort.

“North Carolina has led on digital asset policy, from the updated Money Transmitters Act of 2016 to the bipartisan Regulatory Sandbox Act of 2021 and last year’s HB 690, which prohibited Central Bank Digital Currencies,” said Spuller. “Passing HB 92 will further cement the state’s leadership in financial and technological innovation.”

The post NC moves toward cryptocurrency adoption with new bill for state investments in digital assets first appeared on Carolina Journal.