House committee substitute to the 2nd edition makes the following changes.
Removes the content of previously proposed new GS 147-69.2E and replaces it with the following content. Allows the State Treasurer to invest the cash of the designated funds in digital assets only after obtaining an independent assessment by a third-party consultant that all of the following requirements for proposed assets have been met: (1) the digital assets are maintained with a secure custody solution; (2) the potential investment is appropriate for the designated fund’s circumstances from a total portfolio perspective; and (3) the control environment meets institutional investment industry requirements for independent risk and compliance oversight, operational robustness, and regulatory compliance. Limits investments in digital assets from any of the designated funds to, in the aggregate, 5% of the balance of the designated fund.
Removes amendments to GS 147-69.1 (investments authorized for General Fund and Highway Fund assets) and GS 147-69.2 (investments authorized for special funds held by the State Treasurer).
Adds the following content.
Requires the State Treasurer to examine the feasibility of allowing members of the Supplemental Retirement Income Plan and members of the 457(b) Deferred Compensation Plan to elect to invest in digital assets held as exchange-traded products. If it is determined that such investment is appropriate and the Supplemental Retirement Board of Trustees agrees, then they may adopt rules allowing State employees to invest, including the specified provision in the rules.
Requires the State Bureau of Investigation, along with the State Treasurer, local law enforcement agencies, and other statewide law enforcement agencies, to study the feasibility of creating the North Carolina Digital Asset Reserve to retain digital assets seized and forfeited to the State; sets out issues to be include in the study. Requires a report on the study to the specified NCGA committee by March 1, 2026.
Provides that if H 506 (2025 State Investment Modernization Act) becomes law, then GS 147-69.2, as enacted in that act is repealed, and if S 709 (2025 State Investment Modernization Act) becomes law, then GS 147-69.2, as enacted in that act is repealed. Also provides, that if either of those bills become law, then GS 147-69.2E is amended to give the Investment Authority, rather than the State Treasurer, authority to invest cash of the designated funds in digital assets and requires approval from the Board of Directors based on the independent assessment by the third-party consultant.
Makes conforming changes to the act’s long title.
NC DIGITAL ASSETS INVESTMENTS ACT.
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| View NCGA Bill Details | 2025-2026 Session |
AN ACT TO AUTHORIZE THE STATE TREASURER TO INVEST IN QUALIFYING DIGITAL ASSETS.Intro. by Ross, Brody, Schietzelt, D. Hall.
Bill History:
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Mon, 10 Feb 2025 House: Filed
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Wed, 12 Feb 2025 House: Passed 1st Reading
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Wed, 5 Mar 2025 House: Reptd Fav Com Substitute
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Wed, 16 Apr 2025 House: Reptd Fav Com Sub 2
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Wed, 16 Apr 2025 House: Re-ref Com On Rules, Calendar, and Operations of the House
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Mon, 28 Apr 2025 House: Reptd Fav
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Mon, 28 Apr 2025 House: Cal Pursuant Rule 36(b)
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Mon, 28 Apr 2025 House: Placed On Cal For 04/29/2025
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Tue, 29 Apr 2025 House: Withdrawn From Cal
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Tue, 29 Apr 2025 House: Placed On Cal For 04/30/2025
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Wed, 30 Apr 2025 House: Passed 2nd Reading
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Wed, 30 Apr 2025 House: Passed 3rd Reading
Bill Summaries:
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Bill H 92 (2025-2026)Summary date: Apr 16 2025 - View Summary
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Bill H 92 (2025-2026)Summary date: Mar 5 2025 - View Summary
House committee substitute to the 1st edition makes the following changes. Removes defined terms private key and secure custody solution from GS 147-69.2E (investments in digital assets). Modifies the definition of exchange-trade product so that it includes a security covered under federal law that meets one of now three listed (was, four) requirements. Removes securities that are listed, or authorized for listing, on a national securities exchange or system, or on a tier or segment of the exchange or system, that has listing standards that the North Carolina Secretary of State, on its own initiative or on the basis of an application, determines by rule are substantially similar to the listing standards applicable to certain American security exchanges as an eligible exchange-traded product. Removes requirement that the State Treasurer only invest in digital assets with an average market capitalization over the preceding 12 months of at least $750 billion as determined by the Treasurer using a commercially reasonable method. Removes the requirement that the Treasurer use a secure custody solution if he chooses to internally manage any digital assets. Removes technical changes to GS 147-69.2(e). Makes other technical changes.
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Bill H 92 (2025-2026)Summary date: Feb 10 2025 - View Summary
Adds new GS 147-69.2E (investments in digital assets). Defines digital asset as a virtual currency, cryptocurrency, native electronic asset, stablecoin, nonfungible token, or any other asset that is only digital and that confers economic, proprietary, or access rights or powers. Also defines exchange-traded product, private key, and secure custody solution. Authorizes the State Treasurer to invest the cash of the funds described in GS 147-69.1(b) (the General Fund, the Highway Fund, and the Highway Trust Fund) and GS 147-69.2(a) (40 specified funds) in an amount not to exceed 10% of the balance of the fund at the time of investment, in digital assets that are both: (1) an exchange-traded product and (2) the average market capitalization of the digital assets over the preceding 12 months is at least $750 billion as determined by the Treasurer using a commercially reasonable method. Requires the Treasurer to use a secure custody solution for any internally managed digital assets.
Narrows the Governor and Council of State’s authority to promulgate just rules under GS 147-69.1 (investments for the general fund and highway funds assets) to only those that are necessary (currently, rules and regulations necessary and appropriate) to implement the statute. Makes technical and conforming changes to account for digital asset investment authority under GS 147-69.1 and GS 147-69.2 (investments authorized for special fund held by State Treasurer).