In a striking move that could reshape the future of public fund management, lawmakers in North Carolina have introduced a pair of coordinated legislative proposals that open the door to the inclusion of cryptocurrencies in the state’s retirement system. If passed, the legislation would allow up to 5% of the state’s retirement portfolios to be allocated to digital assets, including Bitcoin, stablecoins, and potentially even NFTs.
While many states across the U.S. have been cautiously experimenting with blockchain-related regulations, North Carolina is now making its presence known in the ongoing race to institutionalize crypto adoption within government financial frameworks. The proposal does not mandate holding specific assets like Bitcoin indefinitely but instead offers a flexible structure that empowers a newly created authority to evaluate digital assets for their risk, reward, and strategic value.
A Dual Legislative Push for Crypto Inclusion
The effort is being driven by two synchronized bills introduced in both chambers of the state legislature. House Bill 506, titled the Investment Modernization Act, was filed on March 24 by Representative Brenden Jones. Its counterpart, Senate Bill 709, was introduced the following day. These “twin bills” are designed to update North Carolina’s investment policies to align with the evolving digital financial landscape.
At the heart of the proposed legislation is the creation of the North Carolina Investment Authority, an independent body under the supervision of the State Treasury. This entity would be tasked with assessing which digital assets qualify for inclusion within the state’s various retirement funds. The decision-making process would not be arbitrary: assets would be evaluated for their economic viability, risk profile, long-term utility, and secure storage solutions.
This approach avoids blanket mandates and instead promotes a diversified and managed strategy. Unlike other state bills that limit crypto investments to high-market-cap assets like Bitcoin and Ethereum, North Carolina’s version leaves room for a broader set of tokens—including stablecoins and NFTs—provided they meet the authority’s due diligence requirements.
Not Just About Bitcoin But It’s Definitely Included
Although the bill doesn’t require holding Bitcoin in particular, it clearly lays the groundwork for such an allocation. This distinction is important. While other states have proposed Bitcoin-specific bills, often driven by ideological or strategic motives, North Carolina’s proposal focuses on modernizing investment options rather than betting on a single digital asset.
However, this isn’t the only piece of legislation under discussion. Just days before the introduction of House Bill 506 and Senate Bill 709, a separate bill—Senate Bill 327, also known as the Bitcoin Reserve and Investment Act—was filed. That bill goes even further, proposing the allocation of up to 10% of public funds specifically into Bitcoin, and includes clear custody requirements. These funds would need to be stored in multi-signature cold wallets and could only be accessed during times of extreme financial crisis, pending a two-thirds majority approval from the General Assembly.
It also proposes the creation of a Bitcoin Economic Advisory Board, a regulatory body that would oversee the reserve and advise on economic strategies tied to Bitcoin holdings.
Institutional Bitcoin Adoption Reaches State-Level Momentum
What North Carolina is doing isn’t occurring in isolation. According to Bitcoin-focused policy tracker Bitcoin Laws, 41 bills proposing Bitcoin reserves or investments have been introduced across 23 U.S. states. Of those, 35 remain active, showing growing momentum among local governments seeking to incorporate digital assets into their financial strategies.
This trend is being amplified by recent moves at the federal level. Earlier this month, former President Donald Trump signed an executive order establishing a Strategic Bitcoin Reserve and a Digital Asset Stockpile, to be seeded by cryptocurrencies confiscated in federal cases. The implications are profound: Bitcoin and other crypto assets are no longer fringe or experimental—they are being positioned as legitimate components of public financial infrastructure.
Potential Benefits and Strategic Risks
The proposals being discussed in North Carolina carry both promise and uncertainty. On the upside, a carefully curated allocation of digital assets could offer higher growth potential compared to traditional conservative instruments like government bonds or treasury notes. Additionally, crypto exposure could act as a hedge against inflation or dollar debasement, offering a diversification benefit to public portfolios that are typically risk-averse.
However, the volatility of crypto markets raises important concerns. Even Bitcoin, which is widely regarded as the most stable of digital assets, has seen price swings exceeding 50% within months. Opponents of the bills may argue that exposing pensioners’ savings to such volatility is irresponsible, even if the allocation is capped at 5%.
The Larger Message North Carolina Is Sending
To mitigate this, the proposed Investment Authority would be obligated to implement secure custody mechanisms and perform extensive asset-level analysis before any investments are made. That means tokens would be judged not just by their price action but also by their utility, liquidity, regulatory profile, and long-term sustainability.
North Carolina’s dual approach—both cautious and bold—signals a maturing view of the crypto market. Instead of diving headfirst into a Bitcoin-only strategy, the state is exploring how to integrate digital assets into its financial architecture in a way that is both flexible and strategic. This contrasts with the narrow focus of other state-level initiatives that treat Bitcoin as the sole viable asset.
Moreover, the inclusion of NFTs and stablecoins in the legislative language indicates an awareness of how diverse the crypto ecosystem has become. This doesn’t mean North Carolina will be loading pension portfolios with JPEGs or meme tokens—but it does show that the legislators are not confined to outdated definitions of what constitutes a valuable digital asset.
If the bills are passed, North Carolina would join the growing ranks of states treating crypto not as a threat but as a financial tool with real-world utility. Whether or not digital assets ultimately find a place in public retirement portfolios, the legislative debate itself is pushing forward a national conversation on the legitimacy of crypto as a long-term store of value.
This initiative reflects a broader recognition: blockchain-based assets are no longer experimental—they’re becoming institutional. And North Carolina wants to be ready.
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