North Carolina has become the latest U.S. state to explore crypto investments for public pension funds, with lawmakers introducing two bills to allow allocating up to 5% of certainfunds to digital assets.
Lawmakers in North Carolina have introduced two separate bills to allow an independent investment authority to invest up to 5% of certain pension funds in digital assets—including cryptocurrencies, stablecoins, and NFTs—provided they use secure custody solutions and assess the associated risks.
The first bill, House Bill 506, was filed by Representative Brenden Jones, while the second, Senate Bill 709, was submitted to the Senate. By submitting the bills in both chambers, lawmakers are increasing the chances that at least one version will pass and become law.
Both bills aim to establish an “Investment Authority” that will operate independently of the State Treasurer and manage investments for various state retirement funds.
This development is part of a growing trend where multiple U.S. states are enacting legislation to permit public pension funds to invest into digital assets, primarily indirectly—through exchange-traded funds. Earlier this year, Indiana introduced House Bill 1322, allowing state-managed pension funds to invest in approved Bitcoin (BTC) ETFs. Around the same time, Kansas proposed legislation that would enable the Kansas Public Employees Retirement System to allocate up to 10% of its funds to Bitcoin-backed products, such as spot Bitcoin ETFs. Similarly, Republican lawmakers in Florida introduced bills that would authorize the state’s Chief Financial Officer to invest up to 10% of certain public funds, including retirement funds, in BTC and other digital assets.
This trend extends beyond the U.S., with pension funds in other countries also increasing their exposure to cryptocurrencies. Australian pension funds have been early adopters, with self-managed superannuation funds boosting their cryptocurrency investments to $664 million by 2023. Most recently, Norway’s Government Pension Fund has also indirectly invested in cryptocurrencies by acquiring shares in MicroStrategy, Marathon Digital Holdings Coinbase, and Block Inc.—all of which hold Bitcoin on their balance sheets.
