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House approves measure to let treasurer study and, in limited cases, invest in digital assets
Summary
House Bill 92 allows the State Treasurer, with guardrails and an investment board, to study and potentially use a small allocation of funds for certain digital assets and directs studies on options for retirement plan participation; the bill passed after debate about pension risk and security.
The North Carolina House passed House Bill 92, the "NC Digital Assets Investment Act," a measure that directs coordination between law enforcement and the State Treasurer on seized digital assets, studies options to permit optional retirement plan participants to invest in digital assets, and allows limited allocations to digital assets subject to statutory caps and oversight.
Sponsor Representative Sheetzelt described three main parts of the bill: a study on establishing a strategic digital asset reserve for seized and forfeited digital assets, an evaluation of whether participants in certain supplemental retirement plans should be permitted to invest in digital assets, and a provision permitting the treasurer to direct portions of specified funds into digital assets under a legislative cap reduced in committee to 5 percent. "It directs law enforcement and the treasurer to work together and study the feasibility of establishing a strategic digital asset reserve, for the purpose of retaining digital assets seized and forfeited to the state," the sponsor said on the floor.
Opponents raised concerns about fiduciary duty and volatility. Representative Clark, drawing on private sector experience, urged caution and opposed using taxpayer and pension funds for risky cryptocurrency allocations. Other members cited high‑profile hacks (the Bybit hack was referenced on the floor) and argued that current custodial risks and potential for future treasurers to change practice warranted tighter oversight and review requirements.
The committee substitute to House Bill 92 passed on second reading 71–44 and was ordered sent to the Senate after third reading.
What happens next: The bill will be considered by the Senate. The measure includes directed studies and a 5% cap in the substitute; any future allocations would require adherence to the bill's guardrails and any implementing actions by the treasurer and investment board.
