NC Digital Assets Investments Act.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 3
HOUSE BILL 92
Committee Substitute Favorable 3/5/25
Committee Substitute #2 Favorable 4/16/25

Short Title: NC Digital Assets Investments Act. (Public)
Sponsors:
Referred to:
February 12, 2025
*H92-v-3*
A BILL TO BE ENTITLED 1
AN ACT TO AUTHORIZE THE STATE TREASURER TO INVEST IN QUALIFY ING 2
DIGITAL ASSETS, EXAM INE THE FEASIBILITY TO ALLOW MEMBERS OF THE 3
STATE RETIREMENT INCOME PLAN AND MEMBERS OF THE 457(B) DEFERRED 4
COMPENSATION PLAN TO INVEST IN DIGITAL ASSETS, AND STUDY A STATE 5
RESERVE TO HOLD SEIZED OR FORFEITED DIGITAL ASSETS. 6
The General Assembly of North Carolina enacts: 7
SECTION 1. Article 6 of Chapter 147 of the General Statutes is amended by adding 8
a new section to read: 9
"§ 147-69.2E. Investments in digital assets. 10
(a) The following definitions apply in this section: 11
(1) Designated funds. – Any of the funds described in G.S. 147-69.1(b) and 12
G.S. 147-69.2(a). 13
(2) Digital asset. – A virtual currency, cryptocurrency, native electronic asset, 14
stablecoin, nonfungible token, or any other asset that is only digital and that 15
confers economic, proprietary, or access rights or powers. 16
(3) Secure custody solution. – A technological product or a blended product and 17
service that employ s advanced security measures to safeguard private keys 18
and prevent unauthorized access. 19
(4) Private key. – A unique element of cryptographic data used for signing 20
transactions on a blockchain that is known to the owner of the unique element. 21
(b) The State Treasurer may invest the cash of the designated funds in digital assets only 22
after obtaining an independent assessment by a third -party consultant that all of the following 23
requirements for proposed investments have been met: 24
(1) The digital assets are maintained with a secure custody solution. 25
(2) The potential investment is appropriate for the designated fund's 26
circumstances from a total portfolio perspective. 27
(3) The control environment meets institutional investment industry requirements 28
for independent risk and compliance oversight, operational robustness, and 29
regulatory compliance. 30
(c) An investment in digital assets from any of the designated funds shall not exceed, in 31
the aggregate, five percent (5%) of the balance of the designated fund." 32
SECTION 2. The Treasurer shall examine the feasibility of allowing members of 33
the Supplemental Retirement Income Plan and members of the 457(b) Deferred Compensation 34
Plan to elect to invest in digital assets, as defined in G.S. 147-69.2E, which are held as 35
General Assembly Of North Carolina Session 2025
Page 2 House Bill 92-Third Edition
exchange-traded products. If the Treasurer determines such investment is appropriate and the 1
Supplemental Retirement Board of Trustees agrees after reviewing the Treasurer's findings, then 2
the Treasurer and Board may adopt rules to implement allowing State empl oyees to invest, 3
including the following: 4
(1) Identifying appropriate investment vehicles. 5
(2) Determining whether a maximum contribution allowable for members of the 6
Supplemental Retirement Income Plan and members of the 457(b) Deferred 7
Compensation Plan should be established and the amount of that contribution. 8
(3) Establishing educational materials to inform State employees about digital 9
asset basics and digital asset investment risks. 10
(4) Any other rules the Treasurer deems necessary. 11
SECTION 3. The St ate Bureau of Investigation, in cooperation with the State 12
Treasurer, local law enforcement agencies, and other statewide law enforcement agencies, shall 13
study the feasibility of establishing the North Carolina Digital Asset Reserve (Reserve), with the 14
purpose of retaining digital assets seized and forfeited to the State. The study shall include at 15
least the following: 16
(1) The State agency or department best suited to administer the Reserve. 17
(2) The best method to hold assets in the Reserve. 18
(3) The process for placing seized or forfeited assets in the Reserve. 19
(4) The best method to time sales from the Reserve to maximize revenue to the 20
Civil Penalty and Forfeiture Fund and benefit local boards of education. 21
(5) Any other issues the stakeholders deem necessary. 22
The State Bureau of Investigation shall report the results of this study, including 23
proposed legislation to create, implement, and administer the Reserve, to the Joint Legislative 24
Oversight Committee on General Government no later than March 1, 2026. 25
SECTION 4. If House Bill 506, 2025 Regular Session, becomes law, 26
G.S. 147-69.2E, as enacted in that act, is repealed. If Senate Bill 709, 2025 Regular Session, 27
becomes law, then G.S. 147-69.2E, as enacted in that act, is repealed. 28
SECTION 5. If House Bill 506, 2025 Regular Session, or Senate Bill 709, 2025 29
Regular Session, becomes law, then G.S. 147-69.2E(b), as enacted in Section 1 of this act, reads 30
as rewritten: 31
"(b) The State Treasurer Investment Authority may invest the cash of the designated funds 32
in digital assets only after obtaining approval by the Board of Directors. The approval shall be 33
based on an independent assessment by a third -party consultant that all of the following 34
requirements for proposed investments have been met: 35
(1) The digital assets are maintained with a secure custody solution. 36
(2) The potential investment is appropriate for the designated fund's 37
circumstances from a total portfolio perspective. 38
(3) The control environment meets institutional investment industry requirements 39
for independent risk and compliance oversight, operational robustness, and 40
regulatory compliance." 41
SECTION 6. This act is effective when it becomes law. 42