A Historic Move Toward State-Level Bitcoin Investment
The North Carolina House of Representatives has officially passed House Bill 92, also known as the Digital Assets Investment Act, a bold piece of legislation that proposes allowing the state to invest in Bitcoin—but only via regulated financial instruments. With a 71-44 vote on April 30, the bill now heads to the Senate, drawing nationwide attention as a potential first-of-its-kind financial experiment in public funds management. Introduced on February 10 by House Speaker Destin Hall, the bill prohibits direct Bitcoin purchases but permits investments through professionally managed exchange-traded products (ETPs) listed on platforms like NASDAQ and NYSE. This approach mirrors how traditional assets are accessed in institutional portfolios, offering regulatory clarity and minimizing technical exposure.
Strict Standards and BTC-Only Focus
The bill includes a strict eligibility criterion: only digital assets with a market cap over $750 billion would qualify for state investment. That means Bitcoin is the sole candidate—eliminating more volatile altcoins from consideration. This risk-managed route positions North Carolina as a pioneer while shielding it from unregulated crypto markets. If passed, it could set a template for other states exploring similar measures within their treasury and retirement systems.
Layers of Oversight to Manage Risk
To ensure security, the bill mandates that any Bitcoin acquired must be stored in cold wallets protected by multi-signature authentication. Moreover, monthly independent audits would verify asset custody, and an external assessment must first confirm that security and regulatory compliance standards are met before any purchases occur. Even more notably, the liquidation of Bitcoin holdings would require a two-thirds vote from the legislature and could only occur in the event of a declared financial emergency. This clause adds a powerful safeguard against hasty or politically motivated decisions.
Retirement Plan Integration on the Horizon?
Another provision allows the State Treasurer to explore the feasibility of offering Bitcoin-backed investment options—again through ETPs—to public employees via their retirement or deferred compensation plans. While still exploratory, it opens the door to broader institutional crypto adoption under state oversight.
Representative Keith Kidwell, one of the bill’s main champions, positioned it not as a radical experiment, but as a modern financial evolution:
What’s Next?
With House approval secured, all eyes now turn to the North Carolina Senate. Should the bill pass there and win the governor’s signature, North Carolina would become the first U.S. state to officially hold Bitcoin within its state investment portfolio—via regulated financial channels. In a time when crypto policy remains divisive, North Carolina’s cautious but forward-leaning framework could become a model for other state treasuries, combining innovation with fiscal responsibility.
