Lawmakers in North Carolina are proposing the allocation of up to 5% of pension funds into digital assets.
According to Bitcoin Laws, North Carolina lawmakers have introduced two separate bills in both chambers (House and Senate) to allow for the allocation of up to 5% of state pension funds into cryptocurrencies. The measure aims to modernize pension investments and pave the way for the integration of digital assets into traditional financial systems.
Both bills, House Bill 506, introduced by Representative Brenden Jones, and Senate Bill 709, propose the creation of an Investment Authority that would operate independently but under the supervision of the State Treasurer. This entity would manage funds from various sources, including state pension funds.
Digital asset fund allocation
One of the key features of both legislative proposals is the ability to invest up to 5% of the funds in digital assets. This includes cryptocurrencies like Bitcoin, stablecoins, and even non-fungible tokens (NFTs). The funds would be securely managed, with a requirement to use custody solutions to protect the investments. Additionally, the Authority would be required to assess the risk and return profile of each asset, ensuring that investment decisions are made thoughtfully.
This legislative proposal is the latest in a series of initiatives in the U.S. to integrate cryptocurrencies into public funds. In recent months, there have been similar attempts, such as House Bill 92 and Senate Bill 327, which aim to allow the State Treasurer to invest directly in Bitcoin.
