Lawmakers in North Carolina are taking steps to bring crypto into state retirement funds. The state’s lawmakers recently introduced two bills that would allow up to 5% of state retirement funds to be invested in crypto assets like Bitcoin.
Representative Brenden Jones introduced the bill, the Investment Modernization Act (House Bill 506), on March 24. Afterward, other lawmakers proposed a similar bill, Senate Bill 709. Both bills favor adding crypto to the state’s retirement funds.
To select appropriate options, the bills call for the creation of the North Carolina Investment Authority. This will be an independent body that screens assets suitable for state retirement funds. Some of the digital assets prioritized include cryptocurrencies, stablecoins, and NFTs.
North Carolina isn’t the only state proposing a crypto retirement fund. However, its proposals are unlike similar bills in other states. Neither the NC proposals do not set specific market cap requirements for the digital assets they could invest in. However, the investment authority must ensure funds are securely stored. And carefully assess risk before any investments are made.
North Carolina’s Growing Interest in Bitcoin
These bills aren’t North Carolina’s first move into Bitcoin. The state recently saw Bill 327, which proposed investing up to 10% of public funds into Bitcoin. Lawmakers believe such a move is a part of a broader financial innovation strategy. The bill aims to strengthen North Carolina’s economy through Bitcoin investments.
If passed, the bill would require the state treasurer to store Bitcoin in a multi-signature cold wallet. Plus, it could only be sold during a major financial crisis and only with approval from lawmakers.
