North Carolina legislators have submitted parallel bills in both the House and Senate that may permit state retirement funds to allocate up to 5% of their investments to cryptocurrencies.
Representative Brenden Jones introduced House Bill 506, also known as the Investment Modernization Act, on March 24. This bill would establish an independent investment authority within the state Treasury to evaluate digital assets for potential inclusion in state retirement funds.
On March 25, lawmakers submitted Senate Bill 709, officially named the State Investment Modernization Act, to the state Senate as an identical version of the House proposal.
The bills define digital assets as cryptocurrencies, stablecoins, NFTs, and any other electronically based assets that provide financial, ownership, or access entitlements. Unlike other state-level crypto legislation, these bills do not impose any market capitalization requirements for digital assets.
Before making investment decisions, the newly created North Carolina Investment Authority must carefully assess the risks and benefits of digital assets while securing funds in a reliable custody solution.
Bitcoin Laws, a tracker of cryptocurrency legislation, stated on X that House Bill 506 does not qualify as a Bitcoin reserve bill because it does not mandate long-term Bitcoin or digital asset holdings by the investment authority.
On March 18, North Carolina senators proposed Senate Bill 327, titled the Bitcoin Reserve and Investment Act, which calls for a dedicated 10% allocation of public funds into Bitcoin.
Republican senators Todd Johnson, Brad Overcash, and Timothy Moffitt introduced this bill to promote Bitcoin investment as a “financial innovation strategy” aimed at improving North Carolina’s economic standing.
Under this proposal, the state treasurer must store Bitcoin holdings in a multi-signature cold storage wallet and can only convert them to cash if a “severe financial crisis” occurs. Two-thirds of North Carolina’s General Assembly must approve any liquidation.
As part of the bill, lawmakers would establish a Bitcoin Economic Advisory Board to regulate the reserve’s management.
Bitcoin Law has recorded 41 Bitcoin reserve bills introduced in 23 states, with 35 still under active consideration.
Earlier this month, President Donald Trump signed an executive order to establish a Strategic Bitcoin Reserve and a Digital Asset Stockpile. The federal government will initially fund these reserves with cryptocurrency seized in government-led criminal proceedings.
