North Carolina Lawmakers Propose Digital Asset Investments for Retirement Funds

A big step toward adding digital assets to its public retirement systems might soon be taken in North Carolina. A maximum of 5% of the state’s pension assets could be invested in cryptocurrencies, such as Bitcoin, according to House Bill 506 and Senate Bill 709. The increasing use of digital assets in conventional financial management is reflected in this action.

The measures seek to create a new investment authority under the North Carolina Treasury and were presented by Representative Brenden Jones with backing from state senators. This group would be in charge of choosing digital assets according to their security characteristics and risk profile. North Carolina’s legislation offers investors choice in selecting assets by not imposing stringent market capitalization criteria, in contrast to other states’ plans.

Evaluating the Risk and Reward

Supporters believe the initiative will diversify the state’s investment strategy and enhance long-term returns. The proposed authority would ensure that funds are stored securely using reliable custody solutions. Importantly, the bills don’t require the state to hold specific assets like Bitcoin permanently. Instead, asset allocation would remain flexible, adapting to market conditions.

In addition to these proposals, Senate Bill 327 — known as the Bitcoin Reserve and Investment Act — suggests allocating up to 10% of public funds solely to Bitcoin. Advocates of the bill argue that Bitcoin could act as a financial safeguard during economic downturns. The legislation mandates storing any Bitcoin holdings in a multi-signature cold wallet to enhance security.

North Carolina isn’t alone in exploring digital asset investments. Other states are also evaluating similar policies as cryptocurrency adoption grows. By considering these measures, lawmakers are signaling confidence in digital assets’ potential to strengthen state finances.

As the bills progress, further debates will determine whether these crypto investments align with the state’s long-term financial goals. If approved, North Carolina could set a precedent for other states looking to modernize their pension fund strategies.