North Carolina Moves to Allow Pension Funds to Invest in Crypto

Legislators of North Carolina submitted similar bills to their respective legislative bodies to authorize state pension funds to invest 5% of their assets in cryptocurrencies together with digital assets.

The proposed laws include various essential components that would allow pension fund investments in cryptocurrencies and digital assets.

Two pieces of legislation emerged in the state House and Senate during April 2021 where they drafted House Bill 506 and Senate Bill 709 to set up the State Investment Authority as an autonomous entity
The proposed body possesses the ability to direct specific sections of multiple retirement fund assets toward cryptocurrency investments together with stablecoins and NFTs.

- Cryptocurrencies (like Bitcoin)

- Stablecoins

- NFTs

Every digital asset owned by the fund must receive secure custody protection during storage.
Following risk/reward analysis the authority can allocate not more than 5% of its investment capital.

Different state legislators across the nation demonstrate an increasing interest in cryptocurrency matters.
Two preceding bills (HB 92 and SB 327) concentrated their attention on Bitcoin investment possibilities for the State Treasurer. This legislative push coincides with:

- Bitcoin's 1.6% price rise to $88,025 (per The Block's data)
- Increased state-level crypto policy activity under the pro-crypto Trump administration

Safeguards & Next Steps Both bills emphasize:

- Institutional-grade custody requirements
- Mandatory risk assessment before crypto exposure
- Operational independence from the State Treasurer

Next the proposals need to undergo committee examination within their particular legislative chambers before the possibility of floor voting can occur.

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