North Carolina (NC) has joined the growing list of US states considering bitcoin investments, proposing a bill that could put up to 10% of state funds into bitcoin. This is part of a national trend with over 20 states exploring similar legislation.
The bill, HB 92, is led by Speaker of the House Destin Hall and co-sponsored by Representatives Mark Brody and Steve Ross.
If passed, it would allow the state treasurer to invest in digital asset exchange-traded products (ETPs) if the underlying asset meets strict criteria, including a market capitalization of at least $750 billion. Right now, Bitcoin is the only digital asset that meets that threshold.
Hall thinks this could put NC at the forefront of technological advancement. He said:
“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 & innovation.”
The bill says state investments must be made through regulated financial products and managed by professional investment managers. These managers must have at least $100 million in assets under management and annual audited financial reports.
The funds for these investments would come from various sources including the General Fund, Highway Fund and state-managed pensions like the teachers’ and state employees’ retirement funds.
But the bill has a hard limit set — no more than 10% of the total state fund balance can be invested in digital assets at any time.
NC is not alone. Florida, Montana, Maryland, Iowa and Kentucky have recently introduced similar bills. Among all the states, Utah’s Strategic Bitcoin Reserve bill is the furthest ahead, as it has passed the House and is waiting for a Senate vote.
At the national level, former President Donald Trump has been a big proponent of putting bitcoin in US reserves. When he took office he issued an executive order telling his administration to look into bitcoin investments.
“This won’t just be a ‘messaging bill’—it’s a plan in motion,” said Dan Spuller, Head of Industry Affairs at the Blockchain Association who has advised NC officials on the bill.
Proponents of the bill say investing in bitcoin would help the state diversify against inflation, strengthen its reserves and get into the digital economy. Many see Bitcoin as modern day gold, a safe store of value in uncertain times.
Opponents say it’s risky. While the bill has safeguards to ensure responsible investing, they worry about the financial risks tied to bitcoin market fluctuations.
HB 92 has to pass the North Carolina state legislature, and with the backing of big state leaders, supporters are hopeful.
