North Carolina is the latest state in the U.S. to consider investing in cryptocurrencies for its public pension funds, with lawmakers proposing two bills that would permit allocating up to 5% of specific funds to digital assets.
The proposed legislation in North Carolina consists of two distinct bills aimed at enabling an independent investment authority to invest a maximum of 5% of designated pension funds in digital assets—including cryptocurrencies, stablecoins, and NFTs—on the condition that they implement secure custody solutions and evaluate the related risks.
The first bill, filed by Representative Brenden Jones, is known as House Bill 506, while the second, submitted to the Senate, is Senate Bill 709. By presenting these bills in both legislative chambers, lawmakers are enhancing the likelihood that at least one version will successfully advance and become law.
Both bills seek to create an “Investment Authority” that will function independently of the State Treasurer and will be responsible for managing investments across various state retirement funds.
This movement aligns with a growing trend where numerous U.S. states are implementing legislation that allows public pension funds to invest in digital assets, mainly through indirect means such as exchange-traded funds. Earlier this year, Indiana presented House Bill 1322, permitting state-managed pension funds to invest in designated Bitcoin (BTC) ETFs. Around the same period, Kansas put forth legislation allowing the Kansas Public Employees Retirement System to allocate up to 10% of its investments in Bitcoin-backed products, including spot Bitcoin ETFs. Likewise, Republican lawmakers in Florida have introduced bills that would empower the state’s Chief Financial Officer to invest up to 10% of certain public funds, encompassing retirement funds, in BTC and other digital currencies.
This trend is not limited to the U.S.; pension funds across the globe are also increasing their involvement in cryptocurrencies. For instance, Australian pension funds have been early adopters, with self-managed superannuation funds boosting their cryptocurrency investments to $664 million by 2023. Recently, Norway’s Government Pension Fund has also indirectly invested in cryptocurrencies through acquiring shares in companies like MicroStrategy, Marathon Digital Holdings, and Block Inc., all of which hold Bitcoin on their balance sheets.