North Carolina bills propose 5% crypto allocation to retirement funds

North Carolina lawmakers have introduced bills to allow the state’s treasurer to allocate up to 5% of retirement funds to cryptocurrencies, including Bitcoin, stablecoins, and NFTs.

The Investment Modernisation Act (House Bill 506) and State Investment Modernisation Act (Senate Bill 709) aim to update state investment strategies by creating an independent authority to oversee digital asset inclusion.

The bills define digital assets broadly, avoiding market cap criteria seen in other state proposals.

While they do not mandate Bitcoin (CRYPTO:BTC) adoption, they require the North Carolina Investment Authority to assess risks and ensure secure custody solutions.

This follows the Bitcoin Reserve and Investment Act (Senate Bill 327), introduced on March 18, which proposes allocating 10% of public funds to Bitcoin as a “financial innovation strategy.”

The bill specifies multi-signature cold storage for BTC and restricts liquidation to severe crises, requiring legislative approval.

North Carolina joins 23 states with active Bitcoin reserve bills, according to Bitcoin Laws.

The proposals align with President Donald Trump’s executive order establishing a Strategic Bitcoin Reserve using forfeited crypto, marking a shift from previous federal skepticism.

While the bills reflect growing institutional interest in crypto, challenges remain.

Critics argue volatility risks could jeopardise retirement funds, while supporters highlight diversification benefits.

The outcome hinges on balancing innovation with fiduciary duty as lawmakers debate crypto’s role in public finance.