North Carolina has introduced a bill that would allow the state treasurer to invest public funds in Bitcoin exchange-traded products (ETPs). If passed, this legislation would position the state as a leader in digital asset adoption.
Bill Limits Investments to Bitcoin ETPs
House Speaker Destin Hall introduced the NC Digital Assets Investments Act (HB 92) on February 10. The bill aims to diversify the state’s investment portfolio by permitting the treasurer to allocate funds to qualified digital assets. However, only ETPs with an average market capitalization of at least $750 billion over the past 12 months are eligible. At present, this restriction applies solely to Bitcoin ETPs.
Additionally, the legislation caps investments at 10% of any state fund’s balance at the time of purchase. Funds that could be allocated toward Bitcoin ETPs include teachers’ and state employees’ pensions, insurance reserves, and veterans’ funds.
Hall emphasized the bill’s potential benefits, stating:
“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.”
He also linked the move to former President Donald Trump’s vision for a national Bitcoin stockpile, highlighting North Carolina’s role in shaping state-level crypto policies.
Rising Interest in Crypto Investments Across U.S. States
The bill’s sponsors cite concerns over inflation, the weakening U.S. dollar, and the long-term growth potential of blockchain technology and decentralized finance as key reasons for embracing digital asset investments.
Co-sponsor Mike Schietzelt stated:
“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.”
The number of U.S. states considering crypto investment legislation is rapidly increasing. Currently, 19 states have proposed similar bills, with Arizona and Utah advancing their legislation beyond House committees. In contrast, North Dakota recently rejected a bill related to crypto investments.
Montana also recently introduced HB 429, a proposal to create a state special revenue account for investing in digital assets and precious metals.
If North Carolina’s bill passes, it could mark a significant step toward state-level Bitcoin adoption in government-managed funds.
