North Carolina House Approves Bills to Allow Bitcoin in Pension Fund

The North Carolina House has approved two bills aimed at modernizing the state's pension fund management to include cryptocurrency investments, addressing a $16 billion deficit.

Key Provisions of the Bills

• House Bill 506 establishes the North Carolina Investment Authority with a five-member board to oversee a $127 billion portfolio.
• Board members will be appointed by state leaders and must have at least ten years of relevant investment experience.
• House Bill 92 allows the Investment Authority to allocate up to 5% of the portfolio to cryptocurrencies.
• Investments are limited to mutual fund equivalents of cryptocurrencies to mitigate risk.

Supporters advocate diversification as a strategy for improving fund performance, while some Democrats express concerns over the risks of cryptocurrency volatility.

Governor Josh Stein supports the bills. The House voted 110-3 for Bill 506 and 71-44 for Bill 92; both now move to the Senate for consideration.