North Carolina lawmakers have introduced legislation that could allow the state’s pension funds to include Bitcoin and other digital assets in their investment portfolios. The bills, known as the Investment Modernization Act (House Bill 506) and the State Investment Modernization Act (Senate Bill 709), were introduced in both chambers of the state legislature in March 2025. The proposed legislation seeks to modernize North Carolina’s approach to long-term investment strategies.

Key Provisions of the Proposed Bills

If passed, the legislation would establish the North Carolina Investment Authority, an independent body under the state Treasury responsible for evaluating and managing investments in digital assets. This authority would be empowered to allocate up to 5% of the state’s pension funds into digital assets, including cryptocurrencies like Bitcoin, stablecoins, NFTs, and other electronic assets that carry economic or proprietary rights.

The bills do not impose a minimum market capitalization requirement for eligible digital assets, which means that various types of cryptocurrencies and digital assets could be considered for investment. However, assets would need to undergo a comprehensive risk and reward analysis, and funds must be securely stored using custody solutions.

While the bills open the door for cryptocurrency investments, they do not mandate that the state hold Bitcoin or any specific digital asset long-term. The flexibility regarding asset selection is notable, as these bills are not designed as a “Bitcoin reserve bill.”

Related Legislation and the Bitcoin Reserve Proposal

In addition to the investment-focused bills, North Carolina lawmakers have also introduced Senate Bill 327, the Bitcoin Reserve and Investment Act, which seeks to allocate up to 10% of public funds specifically into Bitcoin. This BTC would be stored in multi-signature cold storage wallets and could only be liquidated during a financial emergency with approval from two-thirds of the state’s General Assembly.

The formation of a Bitcoin Economic Advisory Board is also part of this bill, which is still under consideration. It highlights the growing interest in Bitcoin as a potential financial asset for state governments.

Growing Wave of Bitcoin Legislation Across the U.S.

North Carolina’s moves are part of a larger trend in the United States, with 41 Bitcoin reserve bills introduced across 23 states. Many of these bills are still under consideration, reflecting the growing momentum behind state-level efforts to include Bitcoin and other digital assets in public finance strategies.

For example, Kentucky recently signed House Bill 701, known as the “Bitcoin Rights” bill, into law, ensuring protections for digital asset users and operations in the state. Oklahoma is also advancing its Strategic Bitcoin Reserve Act (HB 1203), which has already passed the House and is awaiting a decision in the Senate. Texas and Oklahoma are now among the top states working to establish Bitcoin reserves, and Missouri is reviewing its own Bitcoin reserve proposal.

In Arizona, two major Bitcoin bills recently passed the House Rules Committee, signaling further interest in Bitcoin legislation at the state level.

Conclusion

North Carolina’s legislative efforts reflect a growing interest in integrating Bitcoin and other digital assets into state financial strategies. The proposed bills open the door for public funds, including pension funds, to be invested in digital assets like Bitcoin, while also proposing the creation of a Bitcoin reserve. As more states push for similar initiatives, the potential for Bitcoin to play a larger role in public finance grows stronger, signaling a shift in how governments view digital assets and their role in the economy.