Legislators in North Carolina seem to be progressing legislation that could allow the State to assign a part of their public retirement funds in digital assets, including cryptocurrencies such as Bitcoin.
Two identical bills, the bill of the House of Representatives and bill 709 of the Senate, presented on March 24 and March 25, respectively, propose the creation of a new agency, the North Carolina Investment Authority, in charge of evaluating and administering investments in digital assets.
Supervision and risk considerations
The draft Law of the Chamber 506, also known as the Investment Modernization Law, was inserted by representative Brenden Jones. It describes a framework under which the newly formed authority could invest up to 5% of several state funds in cryptocurrencies and other blockchain -based assets.
These include stablecoins, non -fungible tokens (NFT), or any other electronics -based assets that provide economic, patented or access rights. The Senate Law 709 project reflects the language of the Chamber version and seeks to implement the same provisions through the upper state of the State.
Unlike other proposals for cryptographic investment at the state level, North Carolina’s bills do not establish specific market capitalization thresholds for digital assets under consideration.
On the other hand, the investment authority would have discretion to analyze and determine the suitability of each asset, weighing both the risk and the possible yields. The legislation also stipulates that all assets must be maintained in safe custody solutions to ensure protection against cyber threats and robbery.
The proposals are not designed to demand a permanent cryptographic reserve, as indicated by Bitcoin’s laws of Bitcoin legislation. According to their comment, Bills simply authorize, but do not require the possession of digital assets such as Bitcoin in the long term.
“North Carolina HB506 does not create a ‘Bitcoin Reserve’ as such,” said Bitcoin Laws in an X publication. “However, for our purposes (tracking the direct state investment), qualifies for the SBR follow -up list. At least for now.”
Broader comparisons and context
This legislative approach places North Carolina in a category similar to Florida, which has proposed bills that allow the investment of public funds at the state level in Bitcoin, but the creation of a mandatory reserve does not stop.
On the other hand, states such as Texas and Minnesota have adopted different approaches, either demanding reservations or limiting investment to retirement accounts administered by the State without allowing the investment of a direct state -level crypto.
The proposal of the North Carolina Investment Authority would operate under the Treasury of the State and would be directed by the Treasurer. If approved, the new agency would supervise decisions regarding digital asset investments and could serve as a model for other US states that seek to modernize their public investment strategies.
This initiative occurs in the midst of growing interest between US institutions and public entities to obtain exposure to digital asset market. With the cryptocurrency increasingly discussed as part of the diversified investment portfolios, the proposed legislation can pave the way for a broader adoption between finance at the state level.
Even so, the bills must go through greater debate and a possible review before becoming law, and some elements may require the additional approval of the Congress.
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