North Carolina 2025-2026 Regular Session

North Carolina House Bill H92 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		GENERAL ASSEMBLY OF NORTH CAROLINA
2	2		SESSION 2025
3		-	H 3
	3	+	H 2
4	4		HOUSE BILL 92
5	5		Committee Substitute Favorable 3/5/25
6		-	Committee Substitute #2 Favorable 4/16/25
7	6
8	7		Short Title: NC Digital Assets Investments Act. (Public)
9	8		Sponsors:
10	9		Referred to:
11	10		February 12, 2025
12		-	H92-v-3
	11	+	H92-v-2
13	12		A BILL TO BE ENTITLED 1
14	13		AN ACT TO AUTHORIZE THE STATE TREASURER TO INVEST IN QUALIFYING 2
15		-	DIGITAL ASSETS, EXAMINE THE FEASIBILITY TO ALLOW MEMBERS OF THE 3
16		-	STATE RETIREMENT INCOME PLAN AND MEMBERS OF THE 457(B) DEFERRED 4
17		-	COMPENSATION PLAN TO INVEST IN DIGITAL ASSETS, AND STUDY A STATE 5
18		-	RESERVE TO HOLD SEIZED OR FORFEITED DIGITAL ASSETS. 6
19		-	The General Assembly of North Carolina enacts: 7
20		-	SECTION 1. Article 6 of Chapter 147 of the General Statutes is amended by adding 8
21		-	a new section to read: 9
22		-	"§ 147-69.2E. Investments in digital assets. 10
23		-	(a) The following definitions apply in this section: 11
24		-	(1) Designated funds. – Any of the funds described in G.S. 147-69.1(b) and 12
25		-	G.S. 147-69.2(a). 13
26		-	(2) Digital asset. – A virtual currency, cryptocurrency, native electronic asset, 14
27		-	stablecoin, nonfungible token, or any other asset that is only digital and that 15
28		-	confers economic, proprietary, or access rights or powers. 16
29		-	(3) Secure custody solution. – A technological product or a blended product and 17
30		-	service that employs advanced security measures to safeguard private keys 18
31		-	and prevent unauthorized access. 19
32		-	(4) Private key. – A unique element of cryptographic data used for signing 20
33		-	transactions on a blockchain that is known to the owner of the unique element. 21
34		-	(b) The State Treasurer may invest the cash of the designated funds in digital assets only 22
35		-	after obtaining an independent assessment by a third-party consultant that all of the following 23
36		-	requirements for proposed investments have been met: 24
37		-	(1) The digital assets are maintained with a secure custody solution. 25
38		-	(2) The potential investment is appropriate for the designated fund's 26
39		-	circumstances from a total portfolio perspective. 27
40		-	(3) The control environment meets institutional investment industry requirements 28
41		-	for independent risk and compliance oversight, operational robustness, and 29
42		-	regulatory compliance. 30
43		-	(c) An investment in digital assets from any of the designated funds shall not exceed, in 31
44		-	the aggregate, five percent (5%) of the balance of the designated fund." 32
45		-	SECTION 2. The Treasurer shall examine the feasibility of allowing members of 33
46		-	the Supplemental Retirement Income Plan and members of the 457(b) Deferred Compensation 34
47		-	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
48		-	Page 2 House Bill 92-Third Edition
49		-	exchange-traded products. If the Treasurer determines such investment is appropriate and the 1
50		-	Supplemental Retirement Board of Trustees agrees after reviewing the Treasurer's findings, then 2
51		-	the Treasurer and Board may adopt rules to implement allowing State employees to invest, 3
52		-	including the following: 4
53		-	(1) Identifying appropriate investment vehicles. 5
54		-	(2) Determining whether a maximum contribution allowable for members of the 6
55		-	Supplemental Retirement Income Plan and members of the 457(b) Deferred 7
56		-	Compensation Plan should be established and the amount of that contribution. 8
57		-	(3) Establishing educational materials to inform State employees about digital 9
58		-	asset basics and digital asset investment risks. 10
59		-	(4) Any other rules the Treasurer deems necessary. 11
60		-	SECTION 3. The State Bureau of Investigation, in cooperation with the State 12
61		-	Treasurer, local law enforcement agencies, and other statewide law enforcement agencies, shall 13
62		-	study the feasibility of establishing the North Carolina Digital Asset Reserve (Reserve), with the 14
63		-	purpose of retaining digital assets seized and forfeited to the State. The study shall include at 15
64		-	least the following: 16
65		-	(1) The State agency or department best suited to administer the Reserve. 17
66		-	(2) The best method to hold assets in the Reserve. 18
67		-	(3) The process for placing seized or forfeited assets in the Reserve. 19
68		-	(4) The best method to time sales from the Reserve to maximize revenue to the 20
69		-	Civil Penalty and Forfeiture Fund and benefit local boards of education. 21
70		-	(5) Any other issues the stakeholders deem necessary. 22
71		-	The State Bureau of Investigation shall report the results of this study, including 23
72		-	proposed legislation to create, implement, and administer the Reserve, to the Joint Legislative 24
73		-	Oversight Committee on General Government no later than March 1, 2026. 25
74		-	SECTION 4. If House Bill 506, 2025 Regular Session, becomes law, 26
75		-	G.S. 147-69.2E, as enacted in that act, is repealed. If Senate Bill 709, 2025 Regular Session, 27
76		-	becomes law, then G.S. 147-69.2E, as enacted in that act, is repealed. 28
77		-	SECTION 5. If House Bill 506, 2025 Regular Session, or Senate Bill 709, 2025 29
78		-	Regular Session, becomes law, then G.S. 147-69.2E(b), as enacted in Section 1 of this act, reads 30
79		-	as rewritten: 31
80		-	"(b) The State Treasurer Investment Authority may invest the cash of the designated funds 32
81		-	in digital assets only after obtaining approval by the Board of Directors. The approval shall be 33
82		-	based on an independent assessment by a third-party consultant that all of the following 34
83		-	requirements for proposed investments have been met: 35
84		-	(1) The digital assets are maintained with a secure custody solution. 36
85		-	(2) The potential investment is appropriate for the designated fund's 37
86		-	circumstances from a total portfolio perspective. 38
87		-	(3) The control environment meets institutional investment industry requirements 39
88		-	for independent risk and compliance oversight, operational robustness, and 40
89		-	regulatory compliance." 41
90		-	SECTION 6. This act is effective when it becomes law. 42
	14	+	DIGITAL ASSETS. 3
	15	+	The General Assembly of North Carolina enacts: 4
	16	+	SECTION 1. Article 6 of Chapter 147 of the General Statutes is amended by adding 5
	17	+	a new section to read: 6
	18	+	"§ 147-69.2E. Investments in digital assets. 7
	19	+	(a) The following definitions apply in this section: 8
	20	+	(1) Digital asset. – A virtual currency, cryptocurrency, native electronic asset, 9
	21	+	stablecoin, nonfungible token, or any other asset that is only digital and that 10
	22	+	confers economic, proprietary, or access rights or powers. 11
	23	+	(2) Exchange-traded product. – A security or a security covered under federal law, 12
	24	+	as defined in G.S. 78A-2, that meets any of the following requirements: 13
	25	+	a. The security is listed, or authorized for listing, on the New York Stock 14
	26	+	Exchange, the American Stock Exchange, or the National Association 15
	27	+	of Securities Dealers Automated Quotations national market system 16
	28	+	(NASDAQ), or any successor to these entities. 17
	29	+	b. The security is listed, or authorized for listing, on a national securities 18
	30	+	exchange or system, or on a tier or segment of the exchange or system, 19
	31	+	designated by the United States Securities and Exchange Commission 20
	32	+	in 17 C.F.R. § 230.146(b). 21
	33	+	c. The security is a security of the same issuer that is equal in seniority 22
	34	+	to, or that is senior to, a security described in sub-subdivisions a. and 23
	35	+	b. of this subdivision. 24
	36	+	(b) The State Treasurer may invest the cash of the funds described in G.S. 147-69.1(b) 25
	37	+	and G.S. 147-69.2(a) in digital assets that are in an exchange-traded product. 26
	38	+	(c) An investment in digital assets from any of these funds shall not exceed, in the 27
	39	+	aggregate, ten percent (10%) of the balance of the fund at the time of the investment." 28
	40	+	SECTION 2. G.S. 147-69.1 reads as rewritten: 29
	41	+	"§ 147-69.1. Investments authorized for General Fund and Highway Funds assets. 30
	42	+	(a) The Governor and Council of State, with the advice and assistance of the State 31
	43	+	Treasurer, shall adopt such rules and regulations as shall be necessary and appropriate to 32
	44	+	implement the provisions of this section. 33
	45	+	(b) This section applies to funds held by the State Treasurer to the credit of:of each of the 34
	46	+	following: 35
	47	+	(1) The General Fund;Fund. 36 General Assembly Of North Carolina Session 2025
	48	+	Page 2 House Bill 92-Second Edition
	49	+	(2) The Highway Fund and Highway Trust Fund. 1
	50	+	(c) It shall be the duty of the The State Treasurer to shall invest the cash of the funds 2
	51	+	enumerated in subsection (b) of this section in excess of the amount required to meet the current 3
	52	+	needs and demands on such these funds, selecting from among the following: 4
	53	+	… 5
	54	+	(11) Digital assets in accordance with G.S. 147-69.2E. 6
	55	+	(d) Unless otherwise provided by law, the interest or income received and accruing from 7
	56	+	all deposits or investments of such the cash balances shall be paid into the State's General Fund, 8
	57	+	except that all interest or income received and accruing on the monthly balance of the Highway 9
	58	+	Fund and Highway Trust Fund shall be paid into the State Highway Fund and Highway Trust 10
	59	+	Fund. The cash balances of the several funds may be combined for deposit or investment 11
	60	+	purposes; and when such combined deposits or investments are made, the interest or income 12
	61	+	received and accruing from all deposits or investments shall be prorated among the funds in 13
	62	+	conformity with applicable law and law, including the rules and regulations adopted by the 14
	63	+	Governor and Council of State. 15
	64	+	…." 16
	65	+	SECTION 3. G.S. 147-69.2 reads as rewritten: 17
	66	+	"§ 147-69.2. Investments authorized for special funds held by State Treasurer. 18
	67	+	(a) This section applies to funds held by the State Treasurer to the credit of each of the 19
	68	+	following: 20
	69	+	(1) The Teachers' and State Employees' Retirement System of North Carolina. 21
	70	+	(2) The Consolidated Judicial Retirement System of North Carolina. 22
	71	+	(3) The State Health Plan for Teachers and State Employees. 23
	72	+	(4) Repealed by Session Laws 2016-55, s. 1.3, effective January 31, 2017. 24
	73	+	(5) The Disability Salary Continuation Income Plan of North Carolina. 25
	74	+	(6) The North Carolina Firefighters' and Rescue Squad Workers' Pension Fund. 26
	75	+	(7) The North Carolina Local Governmental Employees' Retirement System. 27
	76	+	(8) The Legislative Retirement System of North Carolina. 28
	77	+	(9) The Escheat Fund. 29
	78	+	(10) The Legislative Retirement Fund. 30
	79	+	(11) The State Education Assistance Authority. 31
	80	+	(12) The State Property Fire Insurance Fund. 32
	81	+	(13) Repealed by Session Laws 2016-55, s. 1.3, effective January 31, 2017. 33
	82	+	(14) Repealed by Session Laws 2016-55, s. 1.3, effective January 31, 2017. 34
	83	+	(15) The State Public Education Property Insurance Fund. 35
	84	+	(15a) Repealed by Session Laws 2020-69, s. 9(b), effective July 1, 2020. 36
	85	+	(16) The Liability Insurance Trust Fund. 37
	86	+	(16a) The University of North Carolina Hospitals at Chapel Hill funds, except 38
	87	+	appropriated funds, deposited with the State Treasurer pursuant to 39
	88	+	G.S. 116-350.40. 40
	89	+	(17) Trust funds of The University of North Carolina and its constituent institutions 41
	90	+	deposited with the State Treasurer pursuant to G.S. 116-36.1. 42
	91	+	(17a) North Carolina Veterans Home Trust Fund. 43
	92	+	(17b) North Carolina National Guard Pension Fund. 44
	93	+	(17c) Retiree Health Benefit Fund. 45
	94	+	(17d) The Election Fund. 46
	95	+	(17e) The North Carolina State Lottery Fund. 47
	96	+	(17f) Funds deposited with the State Treasurer by public hospitals pursuant to 48
	97	+	G.S. 159-39(g). 49
	98	+	(17g) Funds deposited with the State Treasurer by Local Government Other 50
	99	+	Post-Employment Benefits Trusts pursuant to G.S. 159-30.1. 51 General Assembly Of North Carolina Session 2025
	100	+	House Bill 92-Second Edition Page 3
	101	+	(17h) The Local Government Law Enforcement Special Separation Allowance 1
	102	+	Fund. 2
	103	+	(17i) The North Carolina Conservation Easement Endowment Fund. 3
	104	+	(17j) The Conservation Grant Fund. 4
	105	+	(17k) The Wildlife Endowment Fund. 5
	106	+	(17l) The Ecosystem Restoration Fund. 6
	107	+	(17m) The Needs-Based Public School Capital Fund. 7
	108	+	(17n) The Riparian Buffer Restoration Fund. 8
	109	+	(18) Any other special fund created by or pursuant to law for purposes other than 9
	110	+	meeting appropriations made pursuant to the Executive Budget Act. 10
	111	+	(19) The Swain County Settlement Trust Fund. 11
	112	+	(20) Institutional funds of the colleges of the North Carolina Community College 12
	113	+	System. 13
	114	+	(21) The Disability Income Plan of North Carolina. 14
	115	+	(22) Repealed by Session Laws 2022-74, s. 20.4(b), as amended by Session Laws 15
	116	+	2023-46, s. 22(a), and as amended by Session Laws 2024-3, s. 9.1(a), effective 16
	117	+	retroactively to July 1, 2022. 17
	118	+	(23) The Catawba Unit No. 1 Decommissioning Trust Fund and the Catawba Unit 18
	119	+	No. 2 Decommissioning Trust Fund established by North Carolina Municipal 19
	120	+	Power Agency Number 1, as described in G.S. 159B-18(b)(6). 20
	121	+	(24) Funds deposited with the State Treasurer by charter schools pursuant to 21
	122	+	G.S. 115C-218.15(f). 22
	123	+	(b) It shall be the duty of the State Treasurer to invest the cash of the funds enumerated 23
	124	+	in subsection (a) of this section in excess of the amount required to meet the current needs and 24
	125	+	demands on these funds. The State Treasurer may invest the funds as provided in this subsection 25
	126	+	in the manner authorized by subsection (e) of this section. If an investment was authorized by 26
	127	+	this subsection at the time the investment was made or contractually committed to be made, then 27
	128	+	that investment shall continue to be authorized by this subsection, and none of the percentage or 28
	129	+	other limitation on investments set forth in this subsection shall be construed to require the State 29
	130	+	Treasurer to subsequently dispose of the investment or fail to honor any contractual commitments 30
	131	+	as a result of changes in market values, ratings, or other investment qualifications. For purposes 31
	132	+	of computing market values on which percentage limitations on investments in this subsection 32
	133	+	are based, all investments shall be valued as of the last date of the most recent fiscal quarter. 33
	134	+	Notwithstanding anything in this section to the contrary, the State Treasurer shall categorize 34
	135	+	investment management arrangements according to the primary investment type or primary 35
	136	+	strategy utilized under the arrangement authorized under subsection (e) of this section. No 36
	137	+	investment management arrangement may be categorized in more than one of the subdivisions 37
	138	+	of this section. The State Treasurer shall select from among the following investments subject to 38
	139	+	the following limitations and requirements: 39
	140	+	… 40
	141	+	(13) Digital assets in accordance with G.S. 147-69.2E. 41
	142	+	…." 42
	143	+	SECTION 4. This act is effective when it becomes law. 43