North Carolina lawmakers have recently introduced House Bill 92, which would allow the state treasurer to invest up to 10% in Bitcoin (BTC) and other qualifying digital assets. Sponsored by Representative Destin Hall, along with Representatives Mark Brody and Steve Ross, the bill specifies that any crypto with a market cap of over $750 billion during the 12 months preceding the potential investment would qualify as a digital asset eligible for investment.
Interestingly, the threshold of $750 billion means that only Bitcoin currently meets the criteria, as Ethereum’s market cap falls short at $323 million. Furthermore, the bill stipulates that the investment must be made through a regulated exchange-traded product (ETP) to ensure compliance and security.
Under this proposed legislation, North Carolina’s State Treasurer would have the authority to invest in digital assets through the General Fund, Highway Fund, and the 24 special funds under its supervision. Oversight of the implementation of digital asset investments would be conducted by the Governor and Council of State, with third-party investment managers required to have at least $100 million in assets under management.
North Carolina is now the 20th US state to introduce Bitcoin reserve legislation, following in the footsteps of states like Montana and Florida. Montana’s House Bill 429 outlines a special revenue account for investments in precious metals, stablecoins, and digital assets, with a minimum market capitalization requirement of $750 billion. The bill also mandates that these assets be held by a qualified custodian or through an exchange-traded fund (ETF), with up to $50 million from the state’s general fund allocated to this investment.
In Florida, a similar bill seeks to authorize the state’s Chief Financial Officer (CFO) to invest up to 10% of public funds in Bitcoin as a hedge against inflation. This legislation also includes provisions for state agencies to accept Bitcoin payments, with conversion into US dollars for general revenue fund contributions.
Other US states like Maryland, Iowa, and Kentucky have also introduced bills to integrate Bitcoin as a strategic reserve asset. Kentucky’s House Bill 376, Maryland’s House Bill 1389, and Iowa’s House File 246 each propose different measures for incorporating Bitcoin, stablecoins, and precious metals into state financial strategies.
As the adoption of digital assets continues to grow, more states are recognizing the potential benefits of diversifying their investment portfolios with cryptocurrencies like Bitcoin. These legislative efforts signal a shift towards embracing the future of finance and exploring new opportunities for growth and stability in state finances.