North Carolina Considers Bitcoin Investment for State Funds
Legislators in North Carolina have introduced a bill that, if passed, would permit the state treasurer to allocate up to 10% of specific state funds to Bitcoin and other qualified digital currencies. House Bill 92, championed by Representative Destin Hall, along with Representatives Mark Brody and Steve Ross, establishes a framework allowing investments only in cryptocurrencies boasting a market capitalization exceeding $750 billion in the twelve months preceding any investment.
This stipulation effectively restricts potential investments to Bitcoin, given its market capitalization significantly surpasses this benchmark, while other popular cryptocurrencies like Ethereum fall short. Furthermore, all such investments would be executed through a regulated exchange-traded product, guaranteeing a degree of oversight and adherence to established financial regulations.
Investment Framework and Supervision
The proposed legislation outlines that the North Carolina state treasurer would have the authority to invest in digital assets using funds from the General Fund, the Highway Fund, and 24 other special funds under the treasurer’s purview. The Governor and the Council of State would be responsible for the implementation and monitoring of these investments.
The bill also mandates that any third-party managers entrusted with overseeing these digital asset investments must maintain a minimum of $100 million in assets under management. This provision aims to protect the investments by ensuring that experienced and financially secure professionals manage state funds.
Growing Acceptance of Digital Assets Across the Nation
North Carolina is now the 20th state in the U.S. to explore incorporating Bitcoin into its financial strategy. States like Montana and Florida have also recently pursued similar legislative endeavors aimed at creating Bitcoin reserves.
For example, Montana’s House Bill 429 aims to establish a dedicated revenue account for investments in digital currencies, precious metals, and stablecoins. It maintains the $750 billion market capitalization requirement and stipulates that these assets must be held by a qualified custodian or managed through an exchange-traded fund, with a $50 million cap allocated from the general fund.
Similarly, Florida has proposed legislation that would authorize the state’s Chief Financial Officer to invest up to 10% of public funds in Bitcoin. This initiative underscores Bitcoin’s potential as an inflation hedge and highlights its increasing significance among sovereign entities and investment firms.
Other Legislative Developments
Parallel initiatives are in progress in states like Maryland, Iowa, and Kentucky. In Kentucky, House Bill 376, sponsored by Representative TJ Roberts, suggests permitting investments in Bitcoin up to 10% of surplus state funds, facilitating digital asset transactions, and prohibiting central bank digital currencies.
In Maryland, House Bill 1389, introduced by Representative Caylin Young, proposes the creation of a dedicated Bitcoin Reserve Fund, funded by unique penalty funds collected from gambling law violations.
In Iowa, Representative Taylor Collins has introduced House File 246, which would authorize the State Treasurer to manage investments in Bitcoin, stablecoins, and precious metals, with a limit of no more than 5% of public funds allocated to these assets.
| State | Key Proposal | Investment Cap |
|---|---|---|
| North Carolina | House Bill 92: Invest in Bitcoin via regulated ETPs. | 10% of designated funds |
| Montana | House Bill 429: Investment in precious metals, stablecoins, and digital assets. | Up to $50 million from the general fund |
| Florida | Bill to allow investments in Bitcoin as a hedge against inflation. | 10% of public funds |
| Kentucky | House Bill 376: Authorizes Bitcoin investments and digital asset transactions. | 10% of surplus funds |
| Iowa | House File 246: Invest in Bitcoin, stablecoins, and precious metals. | 5% of public funds |
The implementation of these measures reflects a wider national trend where state governments are increasingly considering digital assets as part of their strategic financial reserves. As these legislative proposals continue to evolve, they could significantly impact the future of public fund management and the widespread adoption of digital currencies in state-level finance.
Maxwell Reed is the first editor of Cryptovista360. He loves technology and finance, which led him to crypto. With a background in computer science and journalism, he simplifies digital currency complexities with storytelling and humor. Maxwell began following crypto early, staying updated with blockchain trends. He enjoys coffee, exploring tech, and discussing finance’s future. His motto: “Stay curious and keep learning.” Enjoy the journey with us!