In a significant development reflecting the growing mainstream acceptance of cryptocurrency, North Carolina has become the 20th U.S. state to propose Bitcoin reserve legislation. House Bill 92 (HB 92), introduced by House Speaker Destin Hall and Representatives Mark Brody and Steve Ross, would authorize the state treasurer to invest up to 10% of public funds in Bitcoin and other qualifying digital assets through regulated exchange-traded products (ETPs).
State-Level Momentum and Federal Context
The North Carolina proposal comes amid a broader wave of state-level interest in cryptocurrency investment, catalyzed by President Donald Trump’s supportive stance on Bitcoin reserves and his recent executive order encouraging federal crypto asset stockpiling. The movement has gained particular momentum following Trump’s administration taking office in January 2025.
Currently, 23 states are either actively considering or have already implemented cryptocurrency investments in their financial portfolios. Wisconsin and Michigan have taken the lead by already incorporating crypto assets into their public employee retirement portfolios, while Utah’s legislation has made significant progress, successfully passing its state House of Representatives.
Key Features of North Carolina’s Proposal
HB 92 includes several notable provisions designed to ensure responsible investment in digital assets:
- A 10% cap on investments from the General Fund, Highway Fund, and 24 other special state-managed funds
- A requirement that eligible cryptocurrencies maintain a minimum average market capitalization of $750 billion over 12 months
- Investment exclusively through regulated exchange-traded products (ETPs)
- Current market conditions mean that only Bitcoin qualifies under these criteria
Dan Spuller, Head of Industry Affairs at the Blockchain Association, has emphasized that North Carolina’s proposal is receiving serious consideration, distinguishing it from similar bills in other states that have stalled in the legislative process.
Nationwide Legislative Landscape
Several states have introduced comparable legislation with varying approaches:
Montana: House Bill 429 proposes investing up to $50 million in digital assets, stablecoins, and precious metals through custodians or ETFs.
Florida: Legislation seeks to allocate up to 10% of public funds to Bitcoin.
Kentucky: Proposed bill would allow 10% of excess state funds for Bitcoin investment while explicitly prohibiting central bank digital currencies (CBDCs).
Maryland: Unique approach of funding a Bitcoin Reserve Fund through gambling violation penalties.
Iowa: Comprehensive proposal including Bitcoin, stablecoins, and precious metals, with a 5% cap on public fund allocations.
Market Impact and Investment Context
This wave of state-level interest in Bitcoin investment comes during a period of significant market activity and institutional adoption. Bitcoin currently trades around $98,351, showing a 1.1% increase in recent 24-hour trading, demonstrating the market’s resilience despite recent volatility triggered by international trade tensions.
Speaker Hall emphasized the dual benefits of the proposed legislation, stating, “Investing in digital assets like Bitcoin not only has the potential to generate positive yields for our state investment fund but also positions North Carolina as a leader in technological adoption & innovation.”
Political and Economic Implications
The trend of state-level Bitcoin investment legislation reflects a broader shift in how government institutions view cryptocurrency. While traditional investment vehicles remain dominant, the increasing number of states exploring crypto investments suggests a growing recognition of digital assets as a legitimate component of public fund management.
The movement has gained particular momentum under the Trump administration’s pro-crypto stance, with federal initiatives potentially paving the way for more widespread adoption at both state and national levels. The executive order encouraging crypto asset stockpiling has provided states with additional confidence in pursuing their own digital asset investment strategies.
Challenges and Considerations
Despite the growing enthusiasm, several challenges remain:
- Market volatility and risk management concerns
- Regulatory uncertainty at the federal level
- Need for specialized expertise in digital asset management
- Public perception and accountability considerations
Future Outlook
As more states join the movement toward cryptocurrency investment, the landscape continues to evolve. The success or failure of early adopters like Wisconsin and Michigan, along with the progress of legislation in states like Utah and North Carolina, will likely influence other states’ approaches to digital asset investment.
The trend suggests a growing recognition of cryptocurrency’s potential role in public fund management and state-level financial strategy. As these initiatives progress, they could collectively contribute to the further institutionalization and mainstream acceptance of digital assets in the American financial system.
The movement represents a significant shift in how state governments approach financial innovation and investment strategy. With nearly half of U.S. states now either implementing or considering cryptocurrency investments, the trend appears to be gaining momentum rather than slowing down. As these initiatives continue to develop, they could play a crucial role in shaping the future of public fund management and cryptocurrency adoption in the United States.
Also Read: Bitcoin Jumped 120% in 2024. Will It Happen Again in 2025?
