North Carolina has joined the ranks of states embracing cryptocurrency investments with the introduction of House Bill 92, dubbed the “Digital Assets Investments Act.”

Proposed by Representative Destin Hall and co-sponsored by Representatives Mark Brody and Steve Ross, the bill empowers the State Treasurer to include digital assets like Bitcoin in the state's investment portfolio. This move comes with strict security protocols and oversight measures to safeguard public funds.

Representative Hall emphasized the potential for positive returns and positioning North Carolina as a tech-forward state. The bill's definition of "digital assets" encompasses a wide range, including virtual currencies, cryptocurrencies, NFTs, and more, with a minimum market capitalization requirement of $750 billion.

Bitcoin, with a market cap exceeding $1.95 trillion, surpasses the bill's threshold, distinguishing it from other cryptocurrencies like Ethereum. In addition to direct investments, the bill allows for investments in digital asset ETPs listed on reputable exchanges such as the NYSE and NASDAQ.

The legislation sets a 10% cap on digital asset exposure relative to the fund's total balance and provides flexibility for investments across various state funds, including retirement systems and health plans, aligning with each fund's specific objectives.

North Carolina’s move mirrors a growing trend, with states like Florida also exploring similar initiatives. Over 20 states are actively pursuing Bitcoin investment strategies, highlighting a shift towards digital asset adoption in the public sector. Utah and Arizona are among the states making significant progress in advancing similar legislation.