- North Carolina bills allow up to 5% of retirement funds for cryptocurrencies.
- Bitcoin Reserve Bill proposes 10% of public funds for Bitcoin investment allocation.
- 41 Bitcoin reserve bills were introduced in 23 states, expanding state-level crypto legislation.
North Carolina lawmakers have introduced bills in the House and the Senate that could allow up to 5% of state retirement funds to go to cryptocurrencies — including Bitcoin. The Investment Modernization Act (House Bill 506) was filed by Representative Brenden Jones on March 24, and identical Senate Bill 709 on March 25. The bills would set up an independent investment authority to decide what digital assets might be purchasable by the state for use in retirement.
Digital assets are defined broadly under the bills to include cryptocurrencies, stablecoins, NFTs and other electronic assets that provide economic, or proprietary, rights. Unlike other states, North Carolina proposals impose no market capitalization requirement on the assets. Instead, the newly created North Carolina Investment Authority would be responsible for evaluating for risk and securing custody solutions for any allocated funds.
If passed, these measures would represent a pivotal point in investment of state funds, introducing exposure to the digital assets traditionally considered volatile. Supporters of the bill say that diversification into digital assets can strengthen the state’s financial strategy of the future. However, the bill does not mandate long-term holding of any particular asset by the investment authority, allowing for flexibility in managing the portfolio.
Bitcoin Reserve Bill Proposes Higher Allocation
North Carolina is also considering another bill, introduced on March 18, the Bitcoin Reserve and Investment Act (Senate Bill 327). This Republican-backed bill, spearheaded by Senators Todd Johnson, Brad Overcash, and Timothy Moffitt, mandates 10 percent of the public funds to be allocated for specifically investing in Bitcoin.
The bill frames Bitcoin in the context of a larger state economic strategy. If passed, it would also encourage storing Bitcoin holdings in a multi-signature cold storage wallet. The money could only be liquidated in a ‘severe financial crisis’ and would require the approval of two-thirds of the General Assembly. The bill also suggests the creation of a Bitcoin Economic Advisory Board to supervise and run the investment.
Advocates of Senate Bill 327 make an argument that Bitcoin’s scarcity and its decentralized nature renders it an appealing store of value, particularly due to the deflating nature of traditional currency reserves. However, critics have questioned whether investing in such a volatile asset with public money is a sound idea. While the bill doesn’t specify how to buy Bitcoin, the need for a multi signature cold storage solution means it is geared towards security and long term holding.
State-Level Crypto Legislation Expands Nationwide
According to Bitcoin Laws, a legislative tracker, 41 Bitcoin reserve bills have been introduced across 23 states, with 35 still active. These bills vary in approach, with some states setting aside funds specifically for Bitcoin reserves while others propose broader digital asset allocations.
The introduction of these bills also coincides with recent federal action. Earlier this month, U.S. President Donald Trump signed an executive order establishing a Strategic Bitcoin Reserve and a Digital Asset Stockpile, utilizing cryptocurrency forfeited in government criminal cases. While the federal initiative focuses on digital asset accumulation, state-level bills like those in North Carolina explore cryptocurrency as a potential investment vehicle for public funds.
