North Carolina lawmakers introduced House Bill 92, allowing the State Treasurer to invest in digital assets like cryptocurrency and stablecoins.
Home Speaker Destin Hall, Representatives Stephen Ross, Mark Brody, and Mike Schietzelt, and I presented House Bill 92, the “NC Digital Assets Investments Act,” on February 12.
On February 10, the bill was first introduced. It passed its first reading and was sent to the Committee on Commerce and Economic Development. It will go to the Rules, Calendar, and Operations of the House if it is passed.
Digital Assets to Investments by North Carolina
To bring North Carolina’s investment plan up to date, the bill suggests letting the State Treasurer invest in certain digital assets, such as cryptocurrencies and stablecoins.
The bill outlines:
The State Treasurer may invest the cash of the funds … in digital assets that satisfy both of the following requirements.
“(1) The digital assets are an exchange-traded product. (2) The average market capitalization of the digital assets over the preceding 12 months is at least seven hundred fifty billion dollars ($750,000,000,000), as determined by the State Treasurer using a commercially reasonable method,” the bill describes.
Additionally, the bill details:
An investment in digital assets from any of these funds shall not exceed, in the aggregate, ten percent (10%) of the balance of the fund at the time of the investment.
Making Sure Safe Custody and Reducing Risk
The bill requires a safe storage option for investments that are handled by the company itself in order to keep these assets safe. The General Fund, the Highway Trust Fund, and state pension funds are all covered.
If passed, the Treasurer could oversee investments in digital assets either directly or through outside companies with at least $100 million in assets. Investment firms must give yearly financial records that have been audited unless this requirement is waived to save money.
The bill also allows agreements to indemnify, with the state’s responsibility limited to the amount of the investment. People who support it see it as a more modern way to spend, while people who don’t like it point to volatility and regulatory concerns.
