North Carolina Lawmakers Propose Twin Bills to Allow Pension Funds in Crypto

• North Carolina lawmakers introduce dual bills to create the North Carolina Investment Authority, enabling a controlled allocation of up to 5% in digital assets.
• The proposed bills offer flexibility by omitting market cap limits, allowing digital assets including cryptocurrencies, stablecoins, and NFTs for state fund investments.
• The NC Investment Authority structure promotes governance and transparency by assigning expert board members and a chief investment officer to manage operations.

North Carolina lawmakers have proposed bills that may allow state pension funds to invest in cryptocurrencies. The proposals would let the state treasurer allocate up to 5% of retirement funds into digital assets. The new measures, presented in both the House and Senate, mark another step toward modernizing state investment practices.

Proposed Legislation and New Agency

House Bill 506 was introduced on March 24 by Representative Brenden Jones. Senate Bill 709 followed on March 25. Both bills aim to create the North Carolina Investment Authority (NCIA), an independent agency under the state Treasury. The NCIA will consist of a five-member board headed by the state treasurer. 

Legislators intend for the NCIA to assess digital assets carefully. The bills allow flexibility by not setting market cap limits on cryptocurrencies, stablecoins, non-fungible tokens, or similar assets. The NCIA is expected to review each asset’s risk and reward profile before making any investment decisions. A tweet by Crypto Patel noted that lawmakers are pushing forward bills to include pension funds in cryptocurrency investments, and doubts remain about managing these assets over the long term. Such doubts underscore the need for a thorough review process as the state considers its options.

Investment Strategy and Oversight

The NCIA will oversee various state funds, including retirement systems, general funds, and special funds. The proposed legislation permits the allocation of up to 5% of these funds into digital assets. The agency must ensure that state funds are maintained with secure custody solutions. This oversight is vital as the state steps into the digital asset market. The bills require that risk management remain a priority while exploring new asset classes.

The structure of the NCIA is designed to provide clear governance and transparency. The board’s expertise will guide the investment choices. The new agency will work to balance innovation with the security of public funds. The NCIA is scheduled to form by July 1 and begin full operation on January 1, 2026.

Future Outlook

The proposed measures make North Carolina the 19th state to consider Bitcoin-related proposals in its legislature. The legislation establishes a framework that may bring digital assets into state investments. Lawmakers continue to evaluate the proposals as they weigh public funds against emerging opportunities. Observers note doubts regarding the long-term management of these investments. The state is set to follow a structured path as it modernizes its investment strategies.