A concurrent resolution directing the Legislative Management to consider studying political subdivisions making investments in stablecoins.

69th Legislative Assembly (2025-26) Introduced by Brad Bekkedahl and 5 co-sponsors

Directs a formal study on whether North Dakota political subdivisions should invest in cryptocurrency stablecoins.

Second reading, failed to adopt yeas 15 nays 75

Overview

Bill: House Concurrent Resolution 3022 (HCR 3022)

Type: Concurrent resolution directing legislative study (not immediate law)

Purpose: Direct the Legislative Management to consider studying whether political subdivisions should make investments in cryptocurrency stablecoins.

Introduced: January 30, 2025

Introducers: Representatives Richter, Dockter, Nathe, Toman, Wagner; Senator Bekkedahl

Version/Context: 25.3078.01000, Sixty-ninth Legislative Assembly

Purpose and Intent

HCR 3022 seeks a formal study to determine the feasibility and desirability of political subdivisions (e.g., cities, counties, school districts) investing in stablecoins. The resolution acknowledges both potential benefits and risks of stablecoins within the evolving digital economy and envisions a structured review to assess whether such investments could be prudent.

Key Provisions

Mandate: The Legislative Management is directed to study the feasibility and desirability of political subdivisions investing in cryptocurrency stablecoins.

Stakeholder Input: The study should incorporate input from stakeholders, including representatives from political subdivisions, to examine:

Security
Risk management
Transparency
Compliance
Oversight
Custodian selection
Internal controls
Resource allocation

Deliverables: The Legislative Management must report its findings and recommendations to the Seventieth Legislative Assembly, along with any proposed legislation necessary to implement those recommendations.

Rationale Highlighted in the Bill

The resolution references potential benefits of stablecoins, such as improved payment efficiency, enhanced financial inclusion, and support for monetary policy objectives.

It also notes advantages of government custody of stablecoins, including increased public trust, better regulatory oversight, reduced systemic risk, and support for innovation.

Conversely, it acknowledges risks, including rapid technological change, global competition, cybersecurity threats, and market volatility.

Affected Parties

Primary: Political subdivisions in North Dakota (cities, counties, school districts, and other local governments) that might consider or engage in stablecoin investments.

Secondary: Stakeholders and custodians involved in managing public funds, as well as state-level lawmakers and regulators responsible for oversight and potential implementing legislation.

Procedural and Timeline Details

Committee Action:

Introduced Jan 30, 2025; referred to the Political Subdivisions Committee
Committee hearing held around Feb 13, 2025
February 14, 2025: Reported back, do not pass; placed on calendar (8-1-4)

Floor Action:

February 17, 2025: Second reading; failed to adopt (yeas 15, nays 75)

Status: Failed to advance; not enacted into law or resolution at this time

Next Steps: As a concurrent resolution, the study could be revisited if reintroduced or in a future session, or its recommendations could inform future legislative or administrative actions. If adopted in a future measure, it would require reporting to the Seventieth Legislative Assembly.

Significance

Although the resolution did not pass, it signals legislative interest in exploring how political subdivisions might engage with stablecoins, balancing potential efficiency and inclusion against governance, security, and risk concerns.

The study, if undertaken, would clarify policy options and any necessary legislative or regulatory changes before political subdivisions consider stablecoin investments.

Bill