North Carolina Pushes for Crypto Exposure in Public Pension Funds with New Legislation

Lawmakers in North Carolina appear to now be advancing legislation that could allow the state to allocate a portion of its public retirement funds into digital assets, including cryptocurrencies like Bitcoin.

Two identical bills, House Bill 506 and Senate Bill 709, introduced on March 24 and March 25 respectively, propose the creation of a new agency — the North Carolina Investment Authority — tasked with evaluating and managing investments in digital assets.

Oversight and Risk Considerations

House Bill 506, also known as the Investment Modernization Act, was introduced by Representative Brenden Jones. It outlines a framework under which the newly formed authority could invest up to 5% of various state funds into cryptocurrencies and other blockchain-based assets.

These include stablecoins, non-fungible tokens (NFTs), or any other electronically based asset that provides economic, proprietary, or access rights. Senate Bill 709 mirrors the language of the House version and seeks to implement the same provisions through the state’s upper chamber.

Unlike other state-level crypto investment proposals, the North Carolina bills do not establish specific market capitalization thresholds for the digital assets under consideration.

Instead, the Investment Authority would have discretion to analyze and determine the suitability of each asset, weighing both risk and potential returns. The legislation also stipulates that all assets must be held in secure custody solutions to ensure protection against cyber threats and theft.

The proposals are not designed to mandate a permanent crypto reserve, as noted by Bitcoin legislation tracker Bitcoin Laws. According to their commentary, the bills merely authorize, but do not require, the holding of digital assets like Bitcoin for the long term.

“North Carolina HB506 doesn’t create a ‘Bitcoin reserve’ as such,” Bitcoin Laws explained in a post on X. “However, for our purposes (tracking direct state investment), it qualifies for the SBR tracking list. At least for now.”

Comparisons and Broader Context

This legislative approach places North Carolina in a category similar to Florida, which has proposed bills allowing state-level public fund investment in Bitcoin but stops short of creating a mandated reserve.

On the other hand, states like Texas and Minnesota have taken different approaches, either mandating reserves or limiting investment to state-managed retirement accounts without enabling direct state-level crypto investment.

The proposed North Carolina Investment Authority would operate under the state Treasury and be led by the Treasurer. If passed, the new body would oversee decisions regarding digital asset investments and could serve as a model for other US states seeking to modernize their public investment strategies.

This initiative comes amid growing interest among US institutions and public entities in gaining exposure to the digital asset market. With cryptocurrency increasingly discussed as part of diversified investment portfolios, the proposed legislation may pave the way for broader adoption across state-level finance.

Still, the bills must go through further debate and potential revision before becoming law, and some elements may require additional approval from Congress.

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