North Carolina lawmakers are considering a proposal to invest public funds into Bitcoin exchange-traded products.
The bill, filed Monday by Rep. Stephen M. Ross (R-NC), calls for the State Treasurer to invest up to 10% of money from North Carolina's funds and retirement systems into Bitcoin ETPs. That means the state could pour more than $10 billion into funds built around the world's oldest cryptocurrency.
Although the draft legislation doesn't refer to Bitcoin by name, it calls for the State Treasurer to invest in exchange-traded products tracking digital assets with a minimum average market capitalization of $750 billion over the past twelve months.
Only one digital asset fits the bill, as of this writing: Bitcoin
More than a dozen states have put forth bills to invest public funds in digital assets such as Bitcoin or stablecoins, with Montana, Maryland, and Kentucky filing such bills just last week. The scope and depth of those proposed investments differs from state to state, however, with some enabling direct investments into cryptocurrencies and some even mentioning Bitcoin by name.
North Carolina has previously propelled pro-crypto bills through its legislature. In 2023, its House of Representatives passed legislation that would prohibit government bodies in the state from accepting central payments denominated in central bank digital currencies, or CBDCs—a form of virtual asset controlled by a state that is opposed by some privacy advocates and crypto-natives.
Not all legislators in North Carolina are supportive of cryptocurrencies, however. Lawmakers last year proposed a bill that would outlaw or introduce stricter regulations on digital assets mining in three parts of the state: Henderson, Polk, and Rutherford Counties, local news outlet NC Newsline reported.
The State Treasurer may invest directly in the Bitcoin exchange-traded products or rely on indirect third-party investment management arrangements, according to the bill.
In the latter case, the state would be allowed to forge third-party investment management arrangements with entities located within or outside the U.S. The investment companies must provide annual audited financial statements to the State Treasurer, unless the State Treasurer waives the requirement after conducting a cost-benefit analysis, the bill stipulates.
Edited by Andrew Hayward
Editor's note: This story was updated after publication to correct the name of the representative who introduced the bill.