North Carolina moves to integrate crypto into state pensions

North Carolina could become one of the first U.S. states to integrate crypto assets into pension funds. Two bills, introduced in March in the House of Representatives and Senate, propose allocating up to 5% of pension fund assets into cryptocurrencies like Bitcoin.

The initiative comes as cryptocurrencies gain recognition as alternative assets, with some institutional funds exploring digital asset diversification. House Bill 506 and Senate Bill 709 would allow the state Treasury to determine which digital assets are suitable for investment.

The definition of digital assets includes cryptocurrencies, stablecoins, and NFTs, without imposing market capitalization criteria. This approach sets North Carolina apart from other states seeking to regulate crypto investments.

If the bills become law, pension funds could gain exposure to a growing asset class but also face associated volatility. It remains to be seen whether this move will be viewed as an opportunity or a risk for pension fund management.