North Dakota hearing examines bill to let state funds invest in digital assets and physical precious metals

Representative Nathan Toman, R‑34 of Mandan, introduced House Bill 1184, saying the bill would allow the state treasury and State Investment Board to invest in physical precious metals and in digital assets that have a market capitalization exceeding $500,000,000,000 and that the change could permit “up to 500,000,000 and change” in such investments as a hedge against inflation.

The bill hearing drew testimony from industry advocates, state investment officials and banking representatives, and prompted questions from several members of the Industry, Business and Labor Committee about custody, risk and whether existing law already permits these investments.

The bill would allow investments in physical forms of precious metals — "it can't be an ETF in gold. It has to be physical gold or palladium or any sort of precious metals that fits that bill," Toman said. On digital assets he said the bill singles out assets with very large market caps and that the decision about which assets to buy would rest with the treasurer and the State Investment Board.

Eric Peterson, policy director at Satoshi Action Fund, framed the proposal as giving the treasurer another tool to protect state purchasing power. "Since that time, you can see that the value…