Two new bills aiming to open the door for cryptocurrency investments have just landed in the North Carolina House and Senate.
Between March 24 and 25, lawmakers introduced House Bill 506 (HB 506), titled the Digital Asset Investment Bill, and Senate Bill 709 (SB 709), known as the State Investment Modernization Act.
However, Bitcoin legislation tracker Bitcoin Laws noted on X that House Bill 506 wasn’t drafted as a Bitcoin reserve bill, as it doesn’t mandate the North Carolina Investment Authority to hold Bitcoin or other cryptocurrencies.
Similarly, SB 709 also did not mention any language about holding Bitcoin as a long-term reserve asset, unlike proposals in other US states like Texas and Arizona.
What are HB 506 and SB 709?
Both bills propose allowing state-managed funds to allocate a portion of their holdings into digital assets like cryptocurrencies, stablecoins, and NFTs.
Under these proposals, investments in digital assets would be capped at 5% of the total balance of each designated fund, which includes the Teachers’ and State Employees’ Retirement System, the Local Governmental Employees’ Retirement System, the Firefighters’ and Rescue Workers’ Pension Fund, the Escheat Fund, and more than 20 other special funds such as those supporting UNC institutions, public hospitals, and environmental programs.
SB 709 goes further by establishing a new independent agency—the North Carolina Investment Authority—to oversee all investment programs.
The agency would have the authority to invest in digital assets, with a 5% cap per fund, provided those investments meet institutional standards for custody, compliance, and risk management.
Further, the bill outlines detailed governance rules, staffing structure, and oversight procedures for the new body.
HB 721, in contrast, sticks to the crypto-specific part. It allows the State Treasurer to make digital asset investments without creating a new authority or altering current governance structures.
Other North Carolina crypto bills
Amid this backdrop, two other bills, specifically the NC Digital Assets Investments Act (HB 92) and the Bitcoin Reserve and Investment Act (SB 327), are currently under consideration.
Senate Bill 327 is the only bill that calls for the creation of a Bitcoin reserve by proposing that up to 10% of public funds be allocated to Bitcoin, with assets stored in a multi-signature cold wallet.
The Bitcoin could only be liquidated during a declared financial emergency, requiring approval from two-thirds of the General Assembly, while a Bitcoin Economic Advisory Board would oversee the reserve.
House Bill 92 adopts a broader definition of digital assets, including cryptocurrencies, stablecoins, and virtual currencies.
It authorises the State Treasurer to invest funds in digital assets, but only through exchange-traded products listed on recognised stock exchanges such as the NYSE or NASDAQ, and approved by the US Securities and Exchange Commission.
As of March 26, a total of 41 Bitcoin reserve bills have been introduced across 23 US states. Of those, 35 remain active.
However, proposals have been rejected across a number of jurisdictions.
For instance, earlier this month, Utah made last-minute amendments to a proposed blockchain bill to drop its Bitcoin investment plans.
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