North Carolina Crypto Bill Could Bring Bitcoin to State Pension Funds
North Carolina has officially entered the digital asset race. Lawmakers in both the state House and Senate introduced bills in late March that could allow public funds, including retirement systems, to invest in cryptocurrencies like Bitcoin.
Two Bills, One Goal: Crypto in State Funds
The proposed legislation includes House Bill 506 and Senate Bill 709, both titled the State Investment Modernization Act. Filed on March 24 and 25, respectively, the bills aim to create the North Carolina Investment Authority (NCIA), a new agency with the power to allocate up to 5% of state-managed funds into digital assets.
The NCIA would operate independently from the current Treasury structure, with oversight of retirement, general, and special funds. It will be led by the state treasurer, who will appoint four other board members based on investment expertise. A chief investment officer will manage daily operations.
The legislation defines digital assets broadly, including cryptocurrencies, stablecoins, NFTs, and other blockchain-based instruments. Unlike other state proposals, these bills do not restrict investments to assets with large market capitalizations, offering the NCIA broader flexibility.
A Separate, Bolder Proposal: Bitcoin Reserve Bill
In addition to the modernization act, a separate and more aggressive bill is under consideration. Senate Bill 327, also known as the Bitcoin Reserve and Investment Act, was introduced on March 18. It proposes investing up to 10% of public funds solely in Bitcoin.
Under this plan, Bitcoin must be held in a multi-signature cold storage wallet. It can only be liquidated during a “severe financial crisis,” and only with two-thirds approval from the North Carolina General Assembly. The bill also proposes the formation of a Bitcoin Economic Advisory Board to monitor the reserve.
Notably, Senate Bill 327 limits eligible digital assets to those with market caps over $750 billion — a threshold only Bitcoin currently meets.
Competing Visions, Growing Momentum
While the 5% proposal is more flexible and inclusive of various digital assets, the 10% bill focuses solely on Bitcoin and aligns closely with the broader national push for a Bitcoin reserve. House Speaker Destin Hall, a key Republican figure in the state, voiced support for the 10% plan, calling it a way to “align with President Trump’s vision for a national Bitcoin stockpile.”
On March 7, President Trump signed an executive order to establish a federal Strategic Bitcoin Reserve and Digital Asset Stockpile. His pro-crypto stance appears to be encouraging states like North Carolina to move forward with digital asset integration.
Public Support and Opposition
While the legislative momentum is clear, the State Employees Association of North Carolina (SEANC) expressed concerns about adding volatile assets to pension portfolios.
“Retirees do not like the conversation about investing in this highly volatile currency,” a SEANC spokesman said. The group fears that experimenting with digital assets could jeopardize promised benefits.
At the same time, crypto proponents argue that including Bitcoin and other assets in the state’s investment strategy could enhance long-term yield and modernize the public fund system. With the global digital asset market gaining institutional traction, backers see this as a chance for North Carolina to stay competitive.
Timeline and Next Steps
If passed, the bills propose that the North Carolina Investment Authority be established by July 1, 2025, with full operations beginning January 1, 2026. The bills are currently in committee, and their fate will likely depend on bipartisan negotiations and the outcome of the broader national crypto policy discussion.
As of now, 41 Bitcoin reserve bills have been introduced across 23 U.S. states, with 35 still active. North Carolina is the 19th state to introduce Bitcoin-related legislation this year.
As the legislative process unfolds, the spotlight remains on whether digital assets will become a cornerstone of public investment—or remain a high-risk experiment.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always consult a licensed advisor before making investment decisions.
