TL;DR
- North Carolina proposes House Bill 92 to invest up to 10% of public funds in Bitcoin ETPs, becoming the 21st state to consider BTC investments.
- The bill mandates strict investment guidelines, requiring digital assets to maintain a market cap of $750 billion and third-party managers to have $100 million in assets.
- This move aligns with a broader trend, as Montana and Florida recently proposed similar bills, reflecting growing state-level interest in cryptocurrency investments.
North Carolina lawmakers have introduced a groundbreaking bill that would allow the state to invest up to 10% of its public funds in Bitcoin ETPs, making it the 21st state to consider such a move. The proposed legislation, known as House Bill 92, was filed by House Speaker Destin Hall along with Representatives Mark Brody and Steve Ross.
Significant Investment Potential
If passed, this bill would enable the State Treasurer to invest more than $10 billion in Bitcoin-based funds, including money from the General Fund, Highway Fund, and 24 special funds under state supervision.
The bill stipulates that qualifying digital assets must maintain a market capitalization of at least $750 billion over the previous twelve months. Currently, Bitcoin is the only cryptocurrency that meets this requirement, with its closest competitor, Ethereum, having a market cap of approximately $323 million.
Investment Management Guidelines
The legislation also outlines strict guidelines for investment management, requiring third-party investment managers handling digital assets to have at least $100 million in assets under management and to provide annual audited financial statements to the State Treasurer.
Part of a Broader Trend
North Carolina’s move is part of a growing trend among states considering cryptocurrency investments. Last week, Montana and Florida introduced similar bills, reflecting a broader shift towards integrating digital assets into state financial strategies.
In Montana, House Bill 429 proposes creating a special revenue account for investments in precious metals, stablecoins, and digital assets, with up to $50 million allocated from the general fund.
Florida’s proposal takes a different approach, positioning Bitcoin as a hedge against inflation and allowing state agencies to accept Bitcoin payments, which would need to be converted to US dollars for general revenue fund contributions.
Commitment to Innovation
The introduction of House Bill 92 highlights North Carolina’s commitment to embracing technological innovation and financial diversification. Speaker Destin Hall stated:
“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.”
Representative Stephen Ross added, “Incorporating digital assets into our state’s investment strategy is a forward-thinking move. Digital assets provide a new avenue to enhance the diversity and potential returns of our portfolio, ensuring financial health and security for North Carolina.”
