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The bill limits investments to Bitcoin exchange-traded products only but includes various state funds such as pensions and insurance.
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North Carolina has become the latest US state to propose legislation permitting the state treasurer to invest public funds in “qualified” digital assets.
The “NC Digital Assets Investments Act” (HB 92), introduced by North Carolina Speaker of the House Destin Hall on Feb. 10, would diversify the state’s investments by allowing the treasurer to include digital assets in its portfolio.
However, one of the requirements is that the digital assets must be an exchange-traded product.
Screenshot from HB92 showing the digital assets must be an ETP Source: North Carolina General Assembly
Additionally, they must have an average market capitalization of at least $750 billion over the previous 12 months, meaning, at the moment, only Bitcoin (BTC) exchange-traded products are eligible. There is also a limit of 10% of any state fund’s balance at the time of investment.
“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,” said Hall, who co-sponsored the bill.
In a post on X, he added that the move aligned with President Trump’s “vision for a national Bitcoin stockpile and ensuring North Carolina leads at the state level.”
Legislators and bill sponsors said there were several reasons to invest in crypto assets, such as US dollar inflation and devaluation, and potential returns from state funds, which include teachers’ and state employees’ pensions, insurance funds and veterans funds.
“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,” said bill co-sponsor Mike Schietzelt.
Related: Utah takes the lead in potentially enacting a Bitcoin reserve bill
The number of US states proposing crypto investment legislation is increasing almost daily.
There are now 19 states with a bill proposed, while Arizona and Utah advanced legislation beyond the House committee level. North Dakota, meanwhile, has rejected legislation regarding crypto investments.
US SBR status by state. Source: Bitcoin Reserve Monitor
On Feb. 7, Montana lawmakers introduced an act (HB 429) for creating a “state special revenue account” for investing in digital assets and precious metals.
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This article first appeared at Cointelegraph.com News
