North Carolina’s House of Representatives has passed a bill that would allow the state treasurer to invest public funds in approved cryptocurrencies. The measure, known as the Digital Assets Investment Act (House Bill 92), passed on April 30 with a 71 to 44 vote and now heads to the Senate for consideration.
Introduced in February by House Speaker Destin Hall, the bill would permit up to 5% of the state’s investment portfolio to be allocated to approved digital assets. Before any investment can be made, an independent third-party review must confirm the assets are stored securely and comply with risk and regulatory standards.
A new amendment also directs the treasurer to study the possibility of allowing retirement and deferred compensation plan participants to invest in digital asset exchange-traded products (ETPs).
The House also passed a companion bill, the State Investment Modernization Act (HB 506), in a 110 to 3 vote. That bill proposes creating the North Carolina Investment Authority (NCIA), which would take over investment management from the state treasurer. If both bills become law, the NCIA would oversee any crypto-related investments, subject to board approval and third-party assessments.
State Treasurer Brad Briner has expressed support for both pieces of legislation.
North Carolina joins a growing number of states exploring digital asset legislation. Arizona currently leads in advancing crypto investment bills at the state level, with two awaiting the governor’s approval.
Featured image from: cointelegraph.com