KEY FACTS: The North Carolina House of Representatives has passed House Bill 92, the Digital Assets Investment Act, by a 71-44 vote, authorizing the state treasurer to invest up to 5% of select public funds, including the $129 billion pension plan, in regulated cryptocurrency exchange-traded products, with Bitcoin as the primary eligible asset due to its $750 billion market cap requirement. The bill, which establishes the North Carolina Investment Authority to oversee the state’s $127 billion portfolio, prohibits direct crypto purchases, mandates third-party assessments, and allows state employees to allocate retirement funds to crypto ETPs. Awaiting Senate approval, the legislation positions North Carolina as a leader in state-level crypto investment, following Arizona.
Source: Bitcoin Laws/ X
North Carolina House Passes Digital Assets Investment Bill
The North Carolina House of Representatives passed House Bill 92, also known as the Digital Assets Investment Act, on April 30, 2025, with a vote of 71 to 44. The legislation, which now heads to the Senate for further deliberation, authorizes the state treasurer to allocate up to 5% of select public funds into approved cryptocurrencies, marking a bold move to integrate digital assets into the state’s financial strategy. This development positions North Carolina as a frontrunner among U.S. states exploring cryptocurrency as a legitimate investment vehicle for public funds, trailing only Arizona in the race to establish state-level crypto investment frameworks.
🇺🇸 State Reserve Race Update:
North Carolina Bitcoin Reserve Bill HB92 has passed the House!
NC is the fifth state legislature to pass SBR legislation through at least one chamber.
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The passage of House Bill 92 evidences a growing recognition of digital assets, particularly Bitcoin, as a viable component of modern investment portfolios. Introduced on February 10, 2025, by Republican House Speaker Destin Hall, the bill outlines a cautious yet progressive approach to crypto investment, prohibiting direct purchases of cryptocurrencies while permitting investments through regulated exchange-traded products (ETPs) listed on established U.S. exchanges. This strategy aims to mitigate the volatility and risks associated with digital assets while providing exposure to their potential upside. The legislation applies to more than two dozen state funds, including North Carolina’s $129 billion pension plan, which supports firefighters, teachers, police officers, and other state employees.
House Bill 92 imposes strict eligibility criteria to ensure that only high-quality digital assets qualify for state investment. According to the bill, eligible cryptocurrencies must have an average market capitalization of at least $750 billion over the past year, as determined by the state treasurer using commercially reasonable methods. Currently, Bitcoin is the only cryptocurrency that meets this threshold, effectively making it the primary focus of the state’s investment strategy under the bill. Additionally, the legislation mandates that any crypto investments be preceded by an independent third-party assessment to confirm secure custody arrangements, robust risk oversight, and compliance with regulatory standards.
The bill also establishes the North Carolina Investment Authority (NCIA), a new entity tasked with overseeing the state’s $127 billion investment portfolio, which includes traditional financial instruments and the emerging digital asset class. If passed into law, investment authority would shift from the state treasurer to the NCIA, with crypto investments requiring approval from the authority’s board of directors based on third-party evaluations. This governance structure will enhance accountability and ensure digital asset investments align with the state’s financial objectives.
One of the bill’s most notable provisions allows state employees to allocate a portion of their retirement and deferred compensation plans into crypto-related exchange-traded products. This move, supported by figures like State Treasurer Brad Briner, is seen as a proactive strategy to diversify investment options and potentially enhance returns for public sector workers. However, the legislation emphasizes a cautious approach, limiting crypto investments to mutual fund equivalents rather than direct purchases of individual cryptocurrencies, thereby reducing exposure to the market’s inherent volatility.
The bill also calls for two studies to further explore the integration of digital assets into state finances. The first will evaluate the feasibility of allowing state employees to invest retirement funds in crypto ETPs, while the second will assess the potential for establishing a state-managed digital asset reserve using confiscated or forfeited cryptocurrencies, in collaboration with the State Bureau of Investigation and other law enforcement agencies. These studies underscore North Carolina’s commitment to thoroughly vetting the risks and opportunities of digital assets before fully committing to their adoption.
The passage of House Bill 92 has sparked a range of reactions among lawmakers, financial experts, and the public. Supporters, including Rep. Keith Kidwell (R-Beaufort), argue that diversifying the state’s investment portfolio into cryptocurrencies is a forward-thinking move that could yield significant returns, particularly given the underperformance of North Carolina’s pension fund compared to other states in recent years. The state’s pension system currently faces a $16 billion deficit, and proponents believe that digital assets could help close this gap by capitalizing on emerging market opportunities.
Source: Bitcoin Laws/ X
Governor Josh Stein has expressed support for the measure, emphasizing the need for greater flexibility in managing state investments. State Treasurer Brad Briner, who campaigned on modernizing North Carolina’s investment governance, has championed the bill as a way to improve pension plan returns and position the state as a leader in financial innovation.
However, the legislation has faced criticism from some Democrats, who caution against the volatility and speculative nature of cryptocurrencies. Opponents argue that exposing public funds, particularly pension plans, to digital assets could jeopardize the financial security of retirees and state employees. Representatives of the State Employees Association of North Carolina have also voiced concerns, urging lawmakers to prioritize stability over speculative investments.
North Carolina’s moves are spurred in part by a pro-crypto stance from the federal government under President Donald Trump, who took office on January 20, 2025. Trump’s campaign promises to make the U.S. a global hub for blockchain innovation have encouraged states to explore digital assets as investment vehicles and economic tools. Arizona, for instance, has taken the lead in this arena, with its House of Representatives approving two bills—SB 1025 and SB 1373, on April 28, 2025, to establish a Strategic Bitcoin Reserve. These bills, which await Governor Katie Hobbs’ signature, would allow Arizona to invest up to 10% of public funds in Bitcoin and other digital assets.
Other states, including New Hampshire, Florida, and Texas, are also considering Bitcoin reserve legislation, according to the state crypto law tracker Bitcoin Laws. New Hampshire’s House passed HB302, which would permit up to 10% of state funds to be invested in digital assets with a market capitalization exceeding $500 billion, while Florida’s House Insurance and Banking Committee unanimously approved HB487, a similar Bitcoin reserve bill. These efforts reflect a growing consensus among state lawmakers that digital assets could serve as a hedge against inflation and a means of modernizing public finance.
North Carolina has also introduced complementary crypto-focused legislation in recent months. House Bill 506, filed alongside HB 92, proposes the creation of the NCIA and mirrors the investment provisions of the Digital Assets Investment Act. Senate Bill 327, known as the Bitcoin Reserve and Investment Act, positions Bitcoin as a “financial innovation strategy” to boost the state’s economic profile. Additionally, House Bill 920, introduced in April 2025, seeks to authorize the use of cryptocurrencies for tax payments and other economic transactions, further signaling the state’s embrace of digital finance.
The passage of House Bill 92 will mark a willingness to embrace the opportunities presented by digital assets while navigating their inherent risks. North Carolina is positioning itself at the forefront of a financial revolution, one that could redefine how public funds are managed in the digital age.
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