KEY FACTS: North Carolina has introduced the "NC Digital Assets Investment Act" (HB 92), a bill that would allow the state treasurer to invest public funds in Bitcoin exchange-traded products (ETPs). Sponsored by House Speaker Destin Hall and Representative Mike Schietzelt, the bill aims to diversify the state's investment portfolio, hedge against inflation, and position North Carolina as a leader in digital asset adoption. The legislation sets criteria, including a minimum $750 billion market capitalization for eligible assets (currently only Bitcoin qualifies) and a 10% cap on state fund investments in digital assets. This move aligns with a growing national trend, with 19 states exploring similar initiatives, though some, like North Dakota, have rejected them. If passed, North Carolina would join a wave of states integrating cryptocurrency into government financial strategies.

NC Digital Assets Investment Act. Source: NC Speaker Destin Hall/X

North Carolina House Speaker Proposes Legislation for State to Invest in Bitcoin ETPs

North Carolina has introduced a bill authorizing the state treasurer to invest public funds in Bitcoin exchange-traded products (ETPs). The legislation tagged "North Carolina Digital Assets Investment Act (HB 92)" is sponsored by House Speaker Destin Hall. The speaker introduced the bill on February 10, 2025, to the North Carolina General Assembly. The proposed legislation seeks to diversify the state's investment avenues by authorizing the treasurer to allocate funds to digital assets, specifically through Bitcoin ETPs. This approach ensures investments are made in regulated and transparent financial instruments, mitigating the inherent volatility associated with direct cryptocurrency holdings.

We're committed to staying ahead by embracing innovation. This bill provides strong guardrails while positioning our state for long-term success. 🏛️📈
SourceToday, I filed HB 92, The North Carolina Digital Assets Investments Act, to authorize the NC State Treasurer to invest in qualifying digital assets like #Bitcoin—aligning with President Trump’s vision for a national Bitcoin stockpile and ensuring North Carolina leads at the state level.

A notable stipulation within the bill is that eligible digital assets must have maintained an average market capitalization of at least $750 billion over the preceding 12 months. Presently, Bitcoin is the sole cryptocurrency meeting this criterion, thereby focusing the state's potential investments exclusively on Bitcoin-related ETPs. Additionally, the bill imposes a cap, restricting such investments to no more than 10% of any state fund's balance at the time of investment.

Proponents of the bill, including Speaker Hall and co-sponsor Representative Mike Schietzelt, have articulated several motivations for this legislative proposal. They highlighted concerns over the inflationary pressures on the U.S. dollar and the potential devaluation of traditional fiat currencies. They opined that by investing in Bitcoin ETPs, the state aims to hedge against these economic challenges and capitalize on the appreciating value of digital assets. Speaker Hall emphasized the strategic importance of this legislation, thus:

"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."

Hall further noted that this initiative aligns with President Trump's vision for establishing a national Bitcoin reserve, ensuring that North Carolina leads at the state level. Co-sponsor Schietzelt echoed these sentiments, asserting thus:

"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."

North Carolina's legislative proposal is part of a national trend in the US. An increasing number of U.S. states are considering incorporating digital assets into their financial frameworks. As of early February 2025, nineteen states had proposed similar bills, depicting a growing recognition of the potential benefits associated with cryptocurrency investments. Notably, states such as Arizona and Utah have advanced their legislation beyond the House committee level, showing a strong commitment to integrating digital assets into state investment strategies. Conversely, North Dakota has recently rejected legislation on crypto investments, illustrating the diverse perspectives and approaches among states regarding this emerging asset class.

The introduction of HB 92 in North Carolina is a significant step toward modernizing the state's investment portfolio through the inclusion of digital assets. The state seeks to balance the potential for high returns with the need for prudent risk management, given the volatile nature of cryptocurrency markets by focusing on Bitcoin ETPs. If enacted, this legislation could serve as a model for other states contemplating similar measures, potentially leading to a more widespread adoption of digital assets within public investment strategies. Moreover, North Carolina's proactive stance may enhance its reputation as a forward-thinking state, committed to embracing technological advancements and innovative financial instruments.

The ongoing increasing adoption of Bitcoin investment at the STate level in the US is getting interesting by the day. We hope it enhances the overall health of the crypto markets in the near future.

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