North Carolina House Approves Crypto Investment Bills for $127B State Pension Fund

A historic move is made by the North Carolina House of Representatives that could redefine state-level investment strategies. The move is related to the passing of two investment bills. These two bills, House Bill 92 and House Bill 506, would allow broader power to manage the state’s $127 billion pension funds. It will open the door to digital asset investments, including cryptocurrencies.  Both bills, which passed this week after a significant debate, reflect a shift in the state’s financial direction. The bills are aimed at tackling a $16 billion pension shortage; they now move to the Senate for consideration. 

House Bill 92: Crypto Enters the Public Portfolio

House Bill 92, dubbed the Digital Assets Investment Act, allows the state treasurer to invest up to around 5% of any one retirement fund in digital assets. This includes cryptocurrencies like Bitcoin, stablecoins, and non-fungible tokens (NFTs). Originally, the bill proposed a 10% cap, but lawmakers halved the limit to reduce perceived risk. The investment bill does not mandate crypto investment but simply authorizes it, granting the treasury flexibility to explore new asset classes. 

It also directs the Treasurer’s Office to conduct feasibility studies for a Bitcoin reserve NC. Potentially composed of seized or forfeited crypto assets handled by law enforcement agencies like the State Bureau of Investigation. Rep.Mike Schietzelt (R-Wake), the bill’s primary sponsor, emphasized that this move is designed to support long-term fiscal stability. 

Debate Over Risk and Fiduciary Duty

HB92 drew vocal criticism from several Democrats despite some support. There are concerns centered around the volatility of digital assets. Representative Tracy Clark (D-Greensboro) has strongly objected to the idea, referring to it as “gambling with retirement funds.” Another Representative, Marcia Morey (D-Durham), illustrated the risk. Using the infamous example of the Bored Ape NFT bought by pop star Justin Bieber, once worth $1.3 million, now valued at a fraction of that. 

“If celebrities are losing millions on these digital tokens, how can we guarantee security for North Carolina teachers and firefighters?” However, the supporters of the right bill have expressed confidence in District Treasurer Brad Briner’s judgment. Citing his experience and willingness to establish strict guidelines for any such investment. 

House Bill 506: Power Shift in Investment Oversight

The second investment bill is House Bill 506, which proposes restructuring how final investment decisions are made. Currently, the sole authority lies with the state treasurer. If enacted, HB 506 would transfer that responsibility to the newly formed North Carolina Investment Authority, a five-member board. This board would include the treasurer and four appointees, each chosen by the governor, House Speaker, Senate President Pro Tem, and the treasurer himself. 

All appointees must bring at least a decade of experience managing pensions, endowments, or similar investment vehicles. The board will also be responsible for selecting a Chief Investment Officer (CIO) with even greater credentials to oversee strategy, contracts, and asset allocation decisions. HB 506 passed overwhelmingly in the House by a 110-3 vote. 

A National Trend Toward Crypto Legislation

North Carolina is not alone in this policy shift. There are several states, like Texas, Arizona, and New Hampshire, that are also reviewing legislation to integrate crypto into public finance strategies. President Donald Trump’s vocal support of digital assets has prompted more state-level lawmakers to propose similar initiatives. In North Carolina, a separate Senate Bill (SB 327) is already under review that could allow up to 10% of public funds to be invested directly into BTC. It can be used in staking or lending strategies. 

Both investment bills now head to the state Senate, where the bills will face further review and reading. If approved, the legislation will be sent to Governor Josh Stein, who has expressed conditional support for expanding the state investment toolkit.