"North Carolina House Passes State Crypto Investment Bill in SEO"

North Carolina House Passes State Crypto Investment Bill

The North Carolina House of Representatives recently passed a bill that would allow the state treasurer to invest public funds in approved cryptocurrencies. The bill, known as the Digital Assets Investment Act or House Bill 92, was approved on its third reading on April 30 by a vote of 71 to 44.

Introduced by Republican House Speaker Destin Hall in February, the bill would enable the treasurer to allocate 5% of the state's investments into designated digital assets. However, before any investments can be made, an independent third-party assessment must confirm that the crypto holdings are secure and meet regulatory compliance standards.

In addition to the initial bill, new amendments were introduced that would allow the treasurer to explore the possibility of allowing members of retirement and deferred compensation plans to invest in digital assets held as exchange-traded products (ETPs).

Another related bill, the State Investment Modernization Act or HB 506, was also passed by the House on April 30 in a 110 to 3 vote. This bill aims to establish the North Carolina Investment Authority (NCIA) to take over investment management from the treasurer.

If both bills are enacted into law, the authority to invest in digital assets would shift from the treasurer to NICA, with board approval required based on third-party assessments.

Arizona Leads the Crypto Bill Race

While North Carolina has made progress in allowing state investments in cryptocurrencies, Arizona currently leads the state-level race in approving similar legislation. Just recently, Arizona's House approved two bills, SB 1025 and SB 1373, which propose different methods for the state to establish a crypto reserve.

Arizona stands out as the only state where both the House and Senate have passed bills related to cryptocurrencies. Now, both bills await Governor Katie Hobbs' decision on whether to enact them into law.

These developments highlight a growing trend among states to embrace cryptocurrencies and explore their potential uses within governmental investment frameworks.

As the crypto industry continues to gain traction and mainstream acceptance, it is important for legislators to create clear guidelines and regulations to ensure the responsible and effective use of digital assets within public funds.