- North Carolina approves a bill allowing Bitcoin exposure through digital asset funds, signaling cautious crypto adoption.
- Lawmakers aim to diversify state reserves using managed BTC fund vehicles, avoiding direct crypto custody risks.
- As pension deficits grow, officials turn to Bitcoin-linked strategies for long-term financial stability and inflation hedging.
North Carolina has taken a major step toward integrating digital assets into state financial policy. On April 30, the state’s House of Representatives approved House Bill 92, which would allow for indirect Bitcoin investments through managed digital asset funds, setting the stage for a new kind of treasury strategy.
Lawmakers Approve Bitcoin Reserve Strategy
House Bill 92, dubbed the Strategic Bitcoin Reserve bill, allows the state to explore Bitcoin investments through diversified, regulated fund vehicles. In a post by Bitcoin.com News, the legislation is described as a pathway for states to engage in digital finance while reducing direct exposure to volatile crypto markets.
Led by House Speaker Destin Hall, the bill has gained traction as a forward-looking policy initiative. “In the same way that a good investment broker would do for you, we need to spread the allocation around,” said Rep. Keith Kidwell, echoing the bill’s emphasis on diversification and long-term capital resilience.
Structure, Custody, and Strategic Direction
The reserve will not hold Bitcoin directly but will invest through digital asset funds to mitigate risk while enabling potential upside. The structure deliberately avoids direct cryptocurrency purchases to ease regulatory pressure and market concerns about volatility.
Custody of the funds will remain with traditional financial institutions, keeping the operational framework compliant with existing investment protocols. This cautious design reflects the state’s goal to modernize its financial portfolio without undermining fiduciary responsibilities or introducing systemic crypto risk.
Growing State-Level Adoption Across the U.S.
North Carolina now joins a growing number of states and cities actively experimenting with Bitcoin reserve models. Arizona has passed legislation allowing up to 10% of its public funds to be allocated to Bitcoin, and Roswell, New Mexico, recently made BTC an official reserve currency, both setting clear precedents.
Broader adoption signals a pivotal transformation underway in how public finance officials view digital assets. Shifting liquidity patterns introduce additional considerations, especially as North Carolina grapples with pension shortfalls nearing $16 billion. Senate approval remains pending, but the momentum suggests that institutional crypto integration is no longer theoretical; it’s underway.
