North Carolina Eyes Crypto for Retirement: Bitcoin Could Power State Pension Funds

North Carolina Eyes Crypto for Retirement

Lawmakers in North Carolina have unveiled new legislative proposals that could pave the way for the state to allocate a portion of its retirement funds into digital assets, including cryptocurrencies like Bitcoin.

The Investment Modernization Act (House Bill 506), introduced by Representative Brenden Jones on March 24, aims to establish an independent investment body under the State Treasury. This authority would be tasked with evaluating and determining which digital assets may be appropriate for inclusion in state-managed retirement portfolios.

A matching bill, titled the State Investment Modernization Act (Senate Bill 709), was presented in the state Senate on March 25, signaling a coordinated effort across both legislative chambers.

The proposed legislation broadly defines digital assets to encompass cryptocurrencies, stablecoins, non-fungible tokens (NFTs), and other electronically-based assets that provide economic, proprietary, or access rights. Notably, the bills do not impose any minimum market capitalization requirements — a condition often found in similar legislation from other states.

If passed, the newly formed North Carolina Investment Authority would be responsible for conducting rigorous risk-reward assessments of potential digital asset investments. The agency would also need to ensure that any holdings are secured through robust custody solutions.

While the bills open the door for crypto exposure, they stop short of mandating specific digital asset holdings. As noted by policy tracker Bitcoin Laws on X (formerly Twitter), House Bill 506 is not structured as a long-term Bitcoin reserve mandate.

Competing Crypto Legislation Gaining Momentum

This move comes shortly after North Carolina senators introduced another crypto-focused proposal — the Bitcoin Reserve and Investment Act (Senate Bill 327) — on March 18. Backed by Republican senators Todd Johnson, Brad Overcash, and Timothy Moffitt, the bill proposes that up to 10% of state public funds be invested specifically in Bitcoin.

Designed as a forward-looking “financial innovation strategy,” Senate Bill 327 seeks to bolster the state’s economic future through strategic exposure to Bitcoin. It includes provisions requiring the cryptocurrency to be stored in a multi-signature cold wallet. Importantly, the funds could only be accessed during a severe financial emergency and would require a two-thirds majority vote from the state’s General Assembly to be liquidated.

Additionally, the bill outlines the creation of a Bitcoin Economic Advisory Board to oversee and guide the management of the reserve.

According to data from Bitcoin Laws, a total of 41 Bitcoin reserve bills have been introduced across 23 U.S. states, with 35 still active.

On a national level, the momentum for Bitcoin legislation is also gaining steam. Earlier this month, former President Donald Trump signed an executive order to establish a Strategic Bitcoin Reserve and a Digital Asset Stockpile, utilizing cryptocurrencies seized in criminal cases as the foundation for these federal initiatives.