Legislators from North Carolina have presented two measures in the House and Senate that would allow the state retirement funds to receive up to 5% of cryptocurrency holdings.
Legislators in North Carolina have presented proposals in the House and Senate that would allow the treasurer of the state to invest up to 5% of its different retirement plans in cryptocurrencies like Bitcoin.
Representative Brenden Jones proposed the Investment Modernization Act (House Bill 506) on March 24. It would establish an independent investment body under the state’s Treasury to decide whether digital assets could be appropriate to add to the state retirement funds.
On March 25, the State Senate received a similar measure, the State Investment Modernization Act (Senate measure 709).
According to the legislation, a digital asset is any electronic asset that grants access, proprietary, or economic rights, including cryptocurrencies, stablecoins, and non-fungible tokens (NFTs).
Unlike other cryptocurrency measures that are being considered for state-level legislation, the North Carolina bills do not impose market capitalization requirements on digital assets.
However, the newly established organization, known as the North Carolina Investment Authority, would have to make sure the money is kept in a safe custody solution and carefully consider the risk and reward profile of each digital asset.
House law 506, according to Bitcoin legislative tracker Bitcoin Laws on X, was not intended as a Bitcoin reserve law since it does not require the investment authority to keep Bitcoin BTC$86,810, or any other digital asset, for an extended period of time.
The Bitcoin Reserve and Investment Act (Senate Bill 327), sponsored by North Carolina senators on March 18, requires the treasurer to invest up to 10% of public monies only in Bitcoin.
Republicans Todd Johnson, Brad Overcash, and Timothy Moffitt filed the measure, which seeks to improve North Carolina’s economic position by using Bitcoin investment as a “financial innovation strategy.”
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Bitcoin could only be liquidated in the event of a “severe financial crisis,” with the consent of two-thirds of the General Assembly of North Carolina. The treasurer would have to make sure that the cryptocurrency is kept in a multi-signature cold storage wallet.
A Bitcoin Economic Advisory Board would also be established under the measure to supervise the maintenance of the reserve.
35 of the 41 Bitcoin reserve measures that have been proposed at the state level in 23 states are still in effect, according to Bitcoin Law.
US President Donald Trump issued an executive order earlier this month to establish a Digital Asset Stockpile and a Strategic Bitcoin Reserve, both of which would initially be funded using bitcoin that has been forfeited in criminal cases involving the government.
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