North Carolina Considers Bitcoin Investments: HB 92 Advances

North Carolina is exploring a noteworthy entry into the digital asset arena, considering the allocation of public finances towards Bitcoin investments. A legislative proposal making its way through the statehouse points to a potential evolution in the state’s approach to managing its financial portfolio, potentially incorporating modern investment vehicles like cryptocurrency exchange-traded funds.

Legislative Milestone for HB 92

The proposed legislation, identified as House Bill 92 (HB 92) and known as the “NC Digital Assets Investments Act,” recently marked a significant advancement. Spearheaded by several representatives including Destin Hall and Mark Brody, the bill secured approval from the state’s House Pensions and Retirement Committee, clearing an initial hurdle towards becoming law.

Investment Parameters and Scope

Should HB 92 be enacted, it would grant the State Treasurer the authority to invest a segment of various public funds into eligible digital assets. This potentially impacts major state resources such as the General Fund and state retirement systems. The legislation imposes a distinct limit, permitting up to 10% of these funds to be directed towards such investments.

Focus on Bitcoin via Spot ETFs

The designated method for these potential investments involves spot Bitcoin Exchange-Traded Funds (ETFs). This strategy offers exposure to Bitcoin’s market value without necessitating the state to directly manage the underlying cryptocurrency. Investment eligibility is confined to digital assets boasting a market capitalization greater than $750 billion, a standard that, at present, only Bitcoin fulfills.

Path to Enactment

While the bill has successfully navigated its first committee review, it still requires approval from three more committees before reaching the floor for a comprehensive legislative vote. If the bill garners final approval from the legislature, its provisions are slated to take effect immediately.