Minnesota Senator Proposes BTC Act After Going from Doubter to Believer
Minnesota State Senator Jeremy Miller has become the latest lawmaker to propose Bitcoin investments in his state.
Key Takeaways:
Investment Modernisation Act (HB 506) – The bill proposes creating an independent investment authority under the state Treasury to evaluate and determine the suitability of digital assets for inclusion in state retirement funds.
Potential Crypto Integration – If passed, the legislation would enable North Carolina’s retirement system to consider cryptocurrency a legitimate investment option, potentially diversifying its portfolio.
Regulatory Oversight – The move signals growing state-level interest in crypto investments, but it also raises questions about risk management, regulatory compliance, and long-term viability within public pension funds.
North Carolina lawmakers are considering new bills allowing cryptocurrency to be included in the state’s retirement system.
Overview
House Bill 506, known as the Investment Modernisation Act and introduced by Representative Brenden Jones on March 24 2025, proposes establishing an independent investment authority within the state Treasury. This authority would assess which cryptocurrencies may be appropriate for inclusion in the state’s retirement funds.
If passed, these bills position North Carolina as a pioneer in adopting digital assets for public pensions, potentially influencing other states to follow suit. The proposals highlight the growing acceptance of crypto in mainstream finance and the risks associated with integrating volatile digital assets into pension portfolios.
Potential Benefits of Cryptocurrency in Retirement Portfolio
Supporters of the bills argue that adding crypto to North Carolina’s retirement system could provide diversification and higher potential returns for pension funds. Proponents point to Bitcoin’s long-term growth and the increasing adoption of blockchain technology as indicators that digital assets could hedge against inflation and economic downturns.
They also highlight successful institutional investors, such as hedge funds and large corporations, that have integrated Bitcoin (BTC) and other cryptocurrencies into their portfolios. Furthermore, advocates believe that as the regulatory landscape matures and more safeguards are implemented, digital assets could offer pension funds new growth opportunities. They cite the recent approval of spot Bitcoin ETFs and the increasing interest from traditional financial institutions as signs that crypto is becoming a more established asset class.
Concerns and Challenges Facing the Proposal
Despite the enthusiasm from supporters, critics argue that adding crypto to state retirement funds carries significant risks. One primary concern is the volatility of cryptocurrencies, with BTC and other cryptocurrencies experiencing extreme price fluctuations over short periods. Opponents worry that such instability could put retirees’ savings at risk, particularly if the market enters a prolonged downturn.
Regulatory uncertainty is another major challenge. While the US Securities and Exchange Commission (SEC) has taken steps to provide more precise guidelines for crypto investments, the industry’s evolving nature means that regulatory changes could impact the viability of including digital assets in pension funds. Additionally, security risks such as hacking and fraud pose a unique threat to crypto holdings, raising questions about how the state would ensure the safety of its investments.
What’s Next for Crypto in North Carolina’s Retirement System?
The proposed bills are still in the early stages of consideration and are expected to face significant debate before making any final decision. Lawmakers will need to carefully weigh the potential benefits against the risks, considering factors such as fiduciary responsibility, regulatory compliance, and long-term sustainability.
If the legislation passes, North Carolina could become one of the first states to officially incorporate crypto into its pension system, setting a precedent for other states evaluating similar measures. However, if concerns about volatility and security outweigh the perceived benefits, lawmakers may opt for a more cautious approach, potentially limiting crypto exposure or implementing strict guidelines for its inclusion.
As discussions continue, the outcome of these bills could provide valuable insights into cryptocurrency’s future role in public pension systems across the United States.