North Carolina Introduces Bill to Create a Strategic Bitcoin Reserve

North Carolina has taken a pioneering step toward integrating digital assets into public finance with the introduction of a bill aimed at establishing a Strategic Bitcoin Reserve.

This initiative, spearheaded by House Speaker Destin Hall and co-sponsored by Representatives Mark Brody and Steve Ross, would empower the state treasurer to invest up to 10% of designated state funds in digital assets—primarily Bitcoin.

Bridging Traditional Finance and Digital Innovation

Under the proposed legislation, known as House Bill 92, North Carolina’s state treasurer would be authorized to allocate funds from the General Fund, Highway Fund, and 24 other special funds into digital asset exchange-traded products (ETPs). 

The bill sets a high bar for qualifying investments, stipulating that only digital assets with an average market capitalization exceeding $750 billion over the past year can be considered. 

Currently, Bitcoin stands as the sole cryptocurrency meeting this requirement, positioning it as the prime candidate for the Strategic Bitcoin Reserve.

Robust Oversight and Investment Safeguards

The bill is designed with rigorous oversight to ensure that public funds are managed prudently. Investments must be made through regulated ETPs listed on reputable exchanges such as the New York Stock Exchange or NASDAQ. 

Additionally, third-party investment managers handling these digital assets are required to have at least $100 million in assets under management, thereby reinforcing investor protection. 

The Governor and the Council of State would jointly oversee the implementation of the program, ensuring that the state’s digital asset investments align with both fiscal responsibility and regulatory standards.

Implications for the Broader Crypto Landscape

North Carolina’s Strategic Bitcoin Reserve initiative is part of a broader national trend, with nearly 20 U.S. states now considering similar measures to diversify their investment portfolios through digital assets. 

By adopting this forward-thinking approach, the state aims not only to generate positive yields for its investment funds but also to position itself as a leader in technological innovation and public finance reform. 

This move echoes earlier calls from national figures, including a vision promoted during the previous presidential campaign to consider cryptocurrencies as a hedge against inflation and a modern store of value.

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