North Carolina’s Crypto Investment Initiative Gains Momentum

North Carolina is making significant strides toward integrating cryptocurrencies into its public finance system. Lawmakers in both the House and Senate have introduced bills that could allow the state to allocate up to 5% of retirement funds to digital assets like Bitcoin. If approved, these measures would mark a major step toward adopting blockchain-based investments at the institutional level.

The Investment Modernization Act Aims to Diversify Retirement Funds

Leading the charge is the Investment Modernization Act (House Bill 506), introduced by Representative Brenden Jones on March 24. The bill proposes the formation of an independent investment authority within the North Carolina Treasury to identify and assess viable digital assets for inclusion in state retirement portfolios.

A companion proposal, Senate Bill 709, was introduced the following day with the same objective: modernize the state’s investment approach by including digital assets such as cryptocurrencies, stablecoins, NFTs, and other blockchain-based tokens that hold economic or access rights.

Unlike other crypto legislation that relies on market cap thresholds, North Carolina’s bills take a broader, more inclusive stance. The proposed North Carolina Investment Authority would evaluate the risk and return of each digital asset before investing and ensure all holdings are kept in secure custody to protect against cyber threats.

Bitcoin Reserve Act Proposes 10% Allocation to BTC

North Carolina is also considering a bolder move. On March 18, lawmakers introduced the Bitcoin Reserve and Investment Act (Senate Bill 327), which aims to allocate up to 10% of public funds directly into Bitcoin. This proposal, backed by Senators Todd Johnson, Brad Overcash, and Timothy Moffitt, treats Bitcoin not just as an asset but as a strategic reserve.

The bill requires that any Bitcoin held by the state be stored in a multi-signature cold wallet, adding a layer of security. Withdrawals from this reserve would only be permitted during a “severe financial crisis” and would need approval from two-thirds of the General Assembly. It also calls for a Bitcoin Economic Advisory Board to manage and oversee the fund.

Nationwide Momentum for Bitcoin Investment Legislation

North Carolina’s crypto policy shift is part of a growing trend among U.S. states exploring Bitcoin adoption. According to Bitcoin Laws, a tracker of crypto-related policy, 41 Bitcoin reserve bills have been introduced in 23 states, with 35 still under active consideration. These bills reflect increasing interest in using Bitcoin and digital assets to strengthen public investment portfolios.

At the federal level, momentum is building as well. Earlier this month, President Donald Trump signed an executive order to establish a Strategic Bitcoin Reserve and a Digital Asset Stockpile, using cryptocurrencies seized in criminal investigations to build initial reserves.

Shaping the Future of Crypto in Public Finance

With these bills, North Carolina positions itself as a potential leader in crypto retirement fund innovation and Bitcoin-based public finance. Whether through cautious diversification into digital assets or a bold Bitcoin reserve strategy, the state’s legislative efforts signal a major shift in how governments view and manage blockchain investments.

If passed, these laws could set a precedent for other states, showcasing how traditional financial systems can embrace cryptocurrencies and reshape the future of public fund management.