cryptopolitan.com
A bill was introduced in the North Carolina House of Representatives on Monday to allow the state treasurer to invest in qualified digital assets to create a reserve fund. Although the bill does not mention Bitcoin, it is the only cryptocurrency that would qualify under the provisions of the bill.
North Carolina House Speaker Destin Hall introduced the NC Digital Assets Investments Act, which was sponsored by Bitcoin proponents Mark Brody and Steve Ross, both of whom are Republicans.
The reserve fund bill looks likely to pass
Blockchain Association head of industrial affairs Dan Spuller, who is also the co-chair of the North Carolina Blockchain Initiative, called the bill “a big deal,” as Hall is “one of NC’s most powerful leaders” on X. Hall said on X that the state was “aligning with President Trump’s vision for a national Bitcoin stockpile and ensuring North Carolina leads at the state level.”
Under the bill, exchange-traded products (ETPs) of digital assets with an average market capitalization of at least $750 billion can be purchased with state funds up to an amount equal to 10% of the state’s funds.
Interest and other income generated by the investments will be paid into the state’s General Fund, with the exception of funds from ETPs of the Highway Fund and Highway Trust Fund, which will remain in the accounts of those funds.
The bill provides a lengthy list of state special (“rainy day”) funds held by the state treasurer. Money from those funds can be invested by the treasurer, and those investments may be managed by the treasurer. Those special funds benefit such things as the teachers’ retirement fund, the state lottery, the Ecosystem Restoration Fund, and many more.
North Carolina could purchase up to 41,040 BTC, assuming a BTC price of $97,417, according to Bitcoin Reserve Monitor.
Many states and the federal government are eyeing reserve funds
According to the Bitcoin Reserve Monitor, the Utah and Arizona legislatures are now considering digital asset reserve bills, and 19 more states, including North Carolina, have legislation pending. Seven of those 19 states and Arizona specifically target Bitcoin in their legislation, as does Arizona.
North Dakota has considered legislation but rejected it.
U.S. senator from Wyoming Cynthia Lummis, a vocal supporter of cryptocurrency, introduced the Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide (BITCOIN) Act at the federal level in July.
The idea of a national digital asset reserve got a big boost after the inauguration of U.S. President Donald Trump, who signed an executive order on January 23 to establish a working group that will establish a regulatory framework for a national digital asset reserve.