North Carolina is exploring the inclusion of cryptocurrency in its state retirement system, with lawmakers introducing two related bills on March 24 and 25.
House Bill 506, known as the Investment Modernization Act, was introduced by Representative Brenden Jones, while Senate Bill 709, titled the State Investment Modernization Act, was introduced the following day.
The proposed legislation in North Carolina aims to allocate up to 5% of state retirement funds to cryptocurrency assets. It seeks to establish the North Carolina Investment Authority, which will independently select suitable digital assets for investment. Unlike other states, these bills do not set investment market cap criteria. The authority will assess the risks and rewards of each asset and ensure secure custody solutions. Additionally, House Bill 506 does not mandate the long-term holding of Bitcoin or other digital assets by the investment authority.
Similarly, two other bills, SB 1373 in North Carolina and SB 1025 in Arizona, aim to create digital asset reserves but take different approaches. North Carolina’s SB 1373, the Strategic Digital Assets Reserve Bill, would establish a fund managed by the state treasurer, primarily funded by confiscated digital assets. This fund would allow annual investments of up to 10% of its value and permit loans under designated risk controls. Arizona’s SB 1025, the Arizona Strategic Bitcoin Reserve Act, focuses explicitly on Bitcoin, allowing the state treasury and retirement system to invest up to 10% of available funds in Bitcoin, which must be held in a segregated federal reserve account. Both bills reflect an intention to integrate digital assets into state financial management, albeit with varying scopes and structures.
Notably, North Carolina is joining a growing number of US states exploring Bitcoin reserve strategies, highlighting an increasing interest in digital assets in public finance. Meanwhile, Arizona is close to becoming the first state to establish a strategic digital asset reserve, with its Bitcoin reserve bills approved by the House Rules Committee.
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