Introduction
Have you ever thought about having your retirement funds invested in Bitcoin or other cryptocurrencies? In North Carolina, this may soon be a possibility. Recently, lawmakers proposed two new bills—House Bill 506 (HB 506) and Senate Bill 709 (SB 709)—which aim to dedicate 5% of specific pension funds to crypto assets and create an independent investment authority. Earlier, HB 92 and SB 327 set the stage for Bitcoin investments. What could this mean for the state’s residents and its financial future? Let’s explore!
HB 506 and SB 709: A Breakthrough in Cryptocurrency Investment
Key Details of HB 506 and SB 709
On March 24 and 25, 2025, lawmakers in North Carolina introduced HB 506 (sponsored by Rep. Brenden Jones) and SB 709 in the Senate. Both bills seek to allocate 5% of certain pension funds to cryptocurrency assets, including Bitcoin, stablecoins, and potentially even NFTs. A key aspect of the proposal is the creation of the “North Carolina Investment Authority,” an independent entity responsible for assessing and overseeing these investments. Unlike other states’ regulations, these bills do not impose market cap requirements on digital assets, allowing for a broader selection of cryptocurrencies.
How They Differ from HB 92 and SB 327
Prior to HB 506 and SB 709, North Carolina introduced HB 92 (filed February 10, 2025) and SB 327 (filed March 18, 2025), which permitted the state treasurer to invest up to 10% of public funds, including pensions, in Bitcoin through ETFs. However, HB 506 and SB 709 adopt a more conservative approach, capping investments at 5% and transferring oversight from the treasurer to a newly proposed independent authority. This shift could bring greater professionalism to the process and help mitigate risks associated with the volatile cryptocurrency market.
| Bill | Allocation Percentage | Filing Date | Management Authority |
| HB 92 | 10% | Feb 10, 2025 | State Treasurer |
| SB 327 | 10% | Mar 18, 2025 | State Treasurer |
| HB 506 | 5% | Mar 24, 2025 | North Carolina Investment Authority |
| SB 709 | 5% | Mar 25, 2025 | North Carolina Investment Authority |
Why Is North Carolina Betting on Cryptocurrency?
Profit Potential from Bitcoin and Digital Assets
Over the past decade, Bitcoin’s value has surged from just cents to tens of thousands of dollars by 2025. Lawmakers, including House Speaker Destin Hall, believe that investing in cryptocurrency could provide substantial returns, helping to strengthen pension funds that are under long-term financial pressure. Given that North Carolina’s pension funds are worth billions, even a 5% allocation could have a notable impact on the digital market.
Global Trends and Political Pressure
North Carolina is not alone—many other U.S. states and countries around the world are also considering integrating crypto into public finance. Backing from figures like Hall, along with the crypto industry’s investment of over $100 million in 2024 political campaigns, has driven these legislative efforts. North Carolina appears keen to take the lead in this movement.
Risks and Challenges of Crypto in Pension Funds
Price Volatility and Asset Safety
Cryptocurrencies, especially Bitcoin, are notorious for price swings. One day they might jump 10%, only to crash the next. The State Employees Association of North Carolina (SEANC) warns that investing pension funds in digital assets could jeopardize the financial security of thousands of retirees. Plus, security concerns—like wallet hacks—pose major hurdles for the new authority.
Opposition from Some Lawmakers
Although these bills have Republican support, they are encountering resistance. Some Democratic lawmakers and Senate leaders, including Phil Berger, advocate for further study before making a commitment. Berger has expressed uncertainty, stating, “I’m not sure if this is a good or bad idea yet,” highlighting the cautious approach some politicians are taking toward this significant change.
Impact on Residents and the Future of Pension Funds
Benefits for Retirees
If enacted and proven effective, these bills could enhance returns for North Carolina retirees, helping to sustain pension funds despite rising inflation. This is the goal lawmakers like Hall hope to accomplish with these initiatives.
Shifting Views on Public Investment
North Carolina’s embrace of crypto could redefine how other states approach public investment. A successful implementation may set a precedent, encouraging nationwide adoption and signaling a shift in modernizing state finance.
Conclusion
North Carolina’s latest bills—HB 92, SB 327, HB 506, and SB 709—are paving the way for cryptocurrency integration into pension funds. While they offer significant potential, they also carry substantial risks. Is this a visionary step toward financial innovation or a risky bet? Only time will tell. What’s your take on adding Bitcoin to pension funds? Share your thoughts and stay tuned for more updates on these transformative laws!
