Crypto Investment Bill Clears House in North Carolina, Advances to Senate for Consideration
An Unconventional Leap: North Carolina’s Crypto Journey
Get ready, NC! Your House of Reps has given a green light to a groundbreaking crypto investment bill, letting the state treasurer nab up to 5% of state investments in digital currencies. Let's delve into the nitty-gritty.
The bill, fondly known as the Digital Gold Rush, or House Bill 92, sailed through its third reading on 30th April with a solid 71 to 44 vote. But hands off the champagne just yet – before becoming a permanent fixture, this golden ticket needs Senate approval first.
Originally conceived by Republican House Speaker Destin Hall back in February, this cryptic quest sets out some specific qualifications for digital assets. Here’s the lowdown:
- Digital assets must be in exchange-traded product (ETP) form.
- The average market cap of the chosen crypto gotta be hefty, kinda like a trillion-dollar whale, as determined by the state treasurer using a commercially sound strategy.
The Crypto Craze doesn’t stop there! House Bill 92 also requires the state treasurer to secure an independent third-party evaluation for the crypto's safety and stability before diving in. On top of that, the crypto asset must follow regulatory compliance standards and come under a solid risk management system.
But there's more! The sneaky amendments made to the bill's draft gear towards an exciting possibility – potentially allowing members of retirement and deferred compensation plans to choose electro-investments (crypto) for their portfolios.
Earlier this month, the NC representatives floated another bill, this time fully embracing crypto for tax payments and other economic transacting. The bill boasts a lineup of requirements for eligible crypto assets to join the party.
Time will tell if NC grabs the gold before Arizona manages to pull off the historic Crypto Craze legislation. As of now, Arizona comes close, with two bills (SB 1025 and SB 1373) sailing through the House, aiming to establish a Strategic Bitcoin Reserve. But the final call remains with Governor Katie Hobbs.
Stay tuned, folks! The crypto game is heating up, and NC is certainly shining a spotlight on the cryptoverse.
Enrichment Insights:- The bill permits the State Treasurer to invest up to 5% of designated state funds (e.g., pension funds) into digital assets like cryptocurrencies, depending on third-party risk assessments.- The bill allows the Supplemental Retirement Board to adopt rules enabling state employees to include cryptocurrency in their retirement portfolios.- The bill mandates a feasibility study for a North Carolina Digital Asset Reserve to manage seized cryptocurrencies, with findings due by March 1, 2026.- The bill currently serves as an investment authority and asset management tool, with no direct provisions for tax payments or cryptocurrency taxation.- Final implementation hinges on Senate approval and subsequent rulemaking.
- North Carolina's House of Representatives has approved a bill called the Digital Gold Rush (House Bill 92), allowing for up to 5% of state investments to be allocated in digital currencies, such as Bitcoin.
- Before becoming law, the Digital Gold Rush bill must receive Senate approval.
- The bill stipulates that digital assets must be in exchange-traded product (ETP) form and have a massive market capitalization, as determined by the state treasurer using commercial strategies.
- Prior to investing, an independent third-party evaluation of the crypto's safety and stability is required.
- The bill also sponsors the potential for members of retirement and deferred compensation plans to include cryptocurrencies in their investment portfolios.
- Recently, another bill was floated, enabling crypto for tax payments and economic transactions, with specific requirements for eligible cryptocurrencies joining the system.
- The race for crypto legislation is ongoing, with Arizona getting close to passing bills aimed at establishing a Strategic Bitcoin Reserve, while North Carolina shines a light on the crypto sphere.
