North Carolina lawmakers are moving closer to allowing the state to invest a portion of its public funds—including those for retirement, education, and infrastructure—into cryptocurrency, as debate around the NC Digital Assets Investments Act intensifies.
The bill, backed by 27 Republican sponsors, would permit up to 5% of any state fund’s assets to be allocated into digital currencies such as Bitcoin. If approved, it would impact over two dozen state funds, including North Carolina’s $129 billion pension plan, which serves firefighters, teachers, police officers, and state employees.
It also tasks the state treasurer and the State Bureau of Investigation with exploring how seized crypto assets might help establish a digital asset reserve.
Adjustments have already been made to the legislation since its original introduction. The initial proposal allowed for up to 10% allocation and was limited to cryptocurrencies with a market cap over $750 billion, effectively limiting eligibility to Bitcoin. That threshold has been removed in the current version. Additionally, a third-party consultant must now evaluate any proposed crypto investments, and funds must be held in a “secure custody solution” instead of relying solely on private key management.
The state Senate has shown support, embedding similar language in its April 19 budget bill, and Governor Josh Stein has also voiced his approval.
“That doesn’t mean that the treasurer must make those investments,” said Stein. “But if there are wise investments that can result in a positive, diversified return for the pension fund, then I’m comfortable with the treasurer making that investment.”
A growing number of states are considering similar legislation. According to the National Conference of State Legislatures, at least 40 states are reviewing cryptocurrency-related bills in 2025. Wisconsin and Michigan already permit crypto investments within state pension portfolios, and Arizona recently advanced a bill to create the country’s first Bitcoin reserve.
Rep. Brian Turner, a Democrat from Asheville, expressed caution. “When we’re talking about the dollar amounts that are in the pension funds, we’re talking about the people whose retirements are at risk here,” he said. “We should be, I would say, using more proven financial instruments to fund those funds.”
Simultaneously, a separate bill—House Bill 506—passed in the House on Tuesday. It would replace the treasurer’s sole fiduciary role with a five-member board, the North Carolina Investment Authority, bringing broader governance to state investment decisions. The board would appoint a chief investment officer with at least 15 years of investment experience, further professionalising the oversight process.
During a committee hearing in April, Treasurer candidate Briner highlighted the need for reform, noting the state’s pension returns averaged 5.9% over the past decade—well below the national average of 7.5%.
“I seek to relinquish some of my power to a board of qualified investment professionals to help deliver better returns for this state so that we can get to a better place, not just for our budget, but for our retirees,” said Briner.
The only concern raised during the House floor vote on the governance bill came from Rep. Pricey Harrison, who asked for confirmation that language permitting crypto investments had been removed. It had been.
As cryptocurrency continues to shape financial discourse nationwide, North Carolina appears to be joining a growing cohort of states exploring its promise—and its risk.
