Key Takeaways
- The bill paves the way for the state treasurer to allocate up to 5% of the total investment portfolio to digital assets
- One provision of the bill calls for an independent third-party review before any crypto investments are made.
North Carolina is one step closer to becoming one of the few U.S. states to allow public funds to be invested in crypto. On April 30, the state’s House of Representatives approved House Bill 92, paving the way for the state treasurer to allocate up to 5% of the total investment portfolio to digital assets. The bill passed with a vote of 71 in favour and 44 against and now heads to the Senate for further debate.
The legislation outlines a cautious approach. Instead of allowing direct investments in individual cryptocurrencies like Bitcoin, the bill permits exposure only through investment vehicles that resemble mutual funds or exchange-traded products (ETPs). These assets must meet standards related to risk oversight, secure custody, and regulatory compliance.
To supervise this shift, a new governing body called the North Carolina Investment Authority is proposed under a related bill, House Bill 506. This board would take over certain responsibilities currently held solely by the state treasurer.
It would include five members: the treasurer and four experts appointed by state leadership, including the governor and legislative heads. Each appointee must have at least ten years of experience managing pension funds, endowments, or similar financial portfolios.
One provision of the bill calls for an independent third-party review before any crypto investments are made. The aim is to ensure that the selected funds are securely managed and appropriately regulated. Another section opens the door to studying whether public employees should be allowed to allocate a portion of their retirement or deferred compensation plans into crypto-related investment products.
Republican House Speaker Destin Hall introduced the bill earlier this year. Supporters argue that it’s a forward-looking move intended to adapt to changes in the global investment landscape. “It’s about smart allocation,” said Rep. Keith Kidwell (R-Beaufort), who believes the state shouldn’t overlook emerging financial instruments that are gaining traction worldwide.
The broader goal, according to lawmakers backing the bill, is to modernize the state’s investment strategy without compromising safety or oversight. The bill’s structure focuses on maintaining traditional investment principles while gradually incorporating new asset classes.
