North Carolina lawmakers are considering legislation to permit the investment of state funds in cryptocurrencies. (Photo illustration by Dan Kitwood/Getty Images)
A North Carolina House committee gave the green light to a bill allowing the state to invest in cryptocurrency funds on Wednesday, after some lawmakers previously expressed concerns and skepticism with the proposal.
House Bill 92 would let the state treasurer invest state dollars into digital asset funds — specifically Bitcoin. The bill’s backers, including House Speaker Destin Hall (R-Caldwell), say it would boost gains on the state’s pension fund.
Members of the House Commerce and Economic Committee advanced the legislation Wednesday. A day earlier, it had run into bipartisan skepticism — and a desire for more information before the committee took a vote.
Hall spoke Wednesday in defense of the bill, assuring members that North Carolina was not the first to pursue digital investments.
“We’re not plowing any new ground in this bill,” Hall said. “It’s new in North Carolina, but it’s not new across the world.”
State Treasurer Brad Briner, a Republican, also notified members in a written memo Wednesday that he supported the bill.
Still, one Democrat publicly expressed reservations. Rep. Bryan Cohn (D-Granville) compared the hype behind digital assets to confidence in the securities that played a role in the financial crash of 2007-09. And he warned against introducing them to the state’s portfolio.
“You generally want your government portfolios to require steady, predictable return,” Cohn said.
Cohn suggested a legislative study on the matter. Hall said one wasn’t necessary, and that the state could look to other states’ methods as guidance.
Representatives for the State Employees Association of North Carolina (SEANC), which opposes the bill, were in the audience Wednesday, though no public comment was allowed.
The bill now heads to the House Rules committee for further consideration before going before the full House.