By Chris Hollingworth 
North Carolina lawmakers are paving the way for potential cryptocurrency investment within the state’s retirement funds through the introduction of two bills in the House and Senate. Representative Brenden Jones presented the Investment Modernization Act (House Bill 506) on March 24, aiming to establish an independent investment authority within the state’s Treasury. This authority would be tasked with assessing the suitability of various digital assets, including cryptocurrencies like Bitcoin, for inclusion in the state retirement funds. A parallel bill, the State Investment Modernization Act (Senate Bill 709), was introduced in the state’s Senate on March 25.
These bills broadly define digital assets to encompass cryptocurrencies, stablecoins, non-fungible tokens (NFTs), and other electronic assets that confer economic, proprietary, or access rights. Unlike some other state-level crypto bills, the North Carolina proposals do not impose specific market cap criteria for digital assets.
The proposed North Carolina Investment Authority would be responsible for carefully evaluating the risk and reward profiles of potential digital asset investments to ensure they are maintained securely. Notably, House Bill 506 does not mandate the long-term holding of Bitcoin or any other digital asset by the investment authority, as highlighted by Bitcoin legislation tracker Bitcoin Laws.
In a separate initiative, North Carolina senators introduced the Bitcoin Reserve and Investment Act (Senate Bill 327) on March 18. This bill suggests allocating up to 10% of public funds specifically into Bitcoin, presenting the cryptocurrency as a strategic financial innovation to bolster the state’s economic position. The treasurer would oversee the storage of Bitcoin in a multi-signature cold storage wallet, with liquidation only permitted during severe financial crises and subject to approval by two-thirds of North Carolina’s General Assembly. Additionally, the bill proposes the establishment of a Bitcoin Economic Advisory Board to supervise the management of the reserve.
The landscape of state-level Bitcoin legislation is evolving rapidly, with 41 Bitcoin reserve bills introduced across 23 states, 35 of which are still active. These developments align with broader trends in the financial sector, including recent executive actions at the federal level to create a Strategic Bitcoin Reserve and a Digital Asset Stockpile utilizing cryptocurrencies seized in government criminal cases.
As North Carolina explores the potential of cryptocurrency investments within its retirement funds, the financial world continues to adapt to the evolving role of digital assets in traditional investment portfolios.
