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North Carolinaβs House of Representatives has made strides in cryptocurrency adoption by passing a crypto investment bill that could allow the state treasurer to allocate up to 5% of state investments into approved digital assets. The bill, officially known as the Digital Assets Investment Act or House Bill 92 (HB 92), passed its third reading on April 30 with a vote of 71 to 44. It now awaits consideration in the Senate for final approval.
Key Highlights of the Digital Assets Investment Act
Introduced in February by Republican House Speaker Destin Hall, HB 92 outlines specific criteria for digital asset investments. If enacted, the bill would enable the state treasurer to invest in cryptocurrencies under the following conditions:
- The digital asset must be offered in the form of an exchange-traded product (ETP).
- The cryptocurrency must maintain an average market capitalization of at least $750 billion over a one-year period, determined through commercially reasonable methods.
- An independent third-party assessment must verify that the crypto holdings are maintained under a secure custody solution.
- The selected cryptocurrency must comply with regulatory standards and incorporate risk oversight mechanisms.
Retirement and Deferred Compensation Plans
Amendments to the bill include provisions that would allow the state treasurer to assess the feasibility of permitting members of retirement and deferred compensation plans to invest in digital assets via exchange-traded products. This move could potentially open up new investment opportunities for North Carolina residents.
Legislative Momentum for Cryptocurrency in North Carolina
This is not the only crypto-related legislation making waves in the state. Earlier in April, North Carolina representatives proposed a separate bill aimed at allowing the use of cryptocurrency for tax payments and other economic transactions. Similar to HB 92, this bill also outlines stringent requirements for eligible digital assets to ensure security and compliance.
North Carolina and Other States in the Crypto Race
While North Carolina is advancing its cryptocurrency initiatives, other states are also vying for leadership in this space. Arizona, for instance, has taken significant steps by approving two crypto-related billsβSB 1025 and SB 1373βwhich aim to establish a Strategic Bitcoin Reserve. These bills, however, are still awaiting the governor’s decision.
What This Means for Crypto Adoption
North Carolinaβs efforts to integrate cryptocurrency into state-level investment and financial systems reflect the growing acceptance of digital assets across the United States. By setting clear guidelines for investment and compliance, the state is creating a framework that could attract institutional interest while ensuring regulatory oversight.
As the bill moves to the Senate, all eyes will be on North Carolina to see if it becomes a leader in state-level cryptocurrency adoption. Such initiatives could pave the way for wider adoption and innovation in the digital finance ecosystem.
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