North Carolina House Passes Bill Allowing 5% Digital Asset Investment in Retirement Funds

The North Carolina House of Representatives has passed the "Digital Asset Investment Act," also known as House Bill 92, which permits the state treasurer to invest up to 5% of any one of the state's retirement funds in digital assets, including cryptocurrencies. The bill, sponsored by 27 Republicans, includes investment requirements, caps, and management, as well as clear definitions and standards for digital assets. The measure passed with a vote of 71-44 on Wednesday and has now been transferred to the State Senate for review.

The passage of this bill marks a significant step towards the integration of digital assets into state financial management. By allowing the state treasurer to invest in digital assets, North Carolina aims to diversify its investment portfolio and explore new opportunities in the digital economy. The bill's provisions ensure that investments are made within clear guidelines, with caps and management structures in place to mitigate risks.

North Carolina State Treasurer Brad Briner publicly supports the bill, making North Carolina the second state in the U.S. to advance government cryptocurrency investments. The Arizona legislature passed two cryptocurrency reserve-related bills on April 28th, currently awaiting signing by Governor Katie Hobbs. Arizona may become the first state in the U.S. to require public funds to be invested in Bitcoin.

The "Digital Asset Investment Act" is part of a broader trend in the United States, where several states are considering or have already implemented legislation to incorporate digital assets into their financial strategies. This trend reflects the growing acceptance of digital assets as a viable investment option and their potential to offer diversification benefits. The bill's transfer to the State Senate for review is a crucial next step, as it will determine whether North Carolina will join other states in embracing digital assets as part of its financial management strategy.