House committee substitute to the 2nd edition makes the following changes.

Removes the content of previously proposed new GS 147-69.2E and replaces it with the following content. Allows the State Treasurer to invest the cash of the designated funds in digital assets only after obtaining an independent assessment by a third-party consultant that all of the following requirements for proposed assets have been met: (1) the digital assets are maintained with a secure custody solution; (2) the potential investment is appropriate for the designated fund’s circumstances from a total portfolio perspective; and (3) the control environment meets institutional investment industry requirements for independent risk and compliance oversight, operational robustness, and regulatory compliance. Limits investments in digital assets from any of the designated funds to, in the aggregate, 5% of the balance of the designated fund.  

Removes amendments to GS 147-69.1 (investments authorized for General Fund and Highway Fund assets) and GS 147-69.2 (investments authorized for special funds held by the State Treasurer).

Adds the following content.

Requires the State Treasurer to examine the feasibility of allowing members of the Supplemental Retirement Income Plan and members of the 457(b) Deferred Compensation Plan to elect to invest in digital assets held as exchange-traded products. If it is determined that such investment is appropriate and the Supplemental Retirement Board of Trustees agrees, then they may adopt rules allowing State employees to invest, including the specified provision in the rules.  

Requires the State Bureau of Investigation, along with the State Treasurer, local law enforcement agencies, and other statewide law enforcement agencies, to study the feasibility of creating the North Carolina Digital Asset Reserve to retain digital assets seized and forfeited to the State; sets out issues to be include in the study. Requires a report on the study to the specified NCGA committee by March 1, 2026.

Provides that if H 506 (2025 State Investment Modernization Act) becomes law, then GS 147-69.2, as enacted in that act is repealed, and if S 709 (2025 State Investment Modernization Act) becomes law, then GS 147-69.2, as enacted in that act is repealed. Also provides, that if either of those bills become law, then GS 147-69.2E is amended to give the Investment Authority, rather than the State Treasurer, authority to invest cash of the designated funds in digital assets and requires approval from the Board of Directors based on the independent assessment by the third-party consultant.

Makes conforming changes to the act’s long title.