North Carolina Lawmakers Reassess Cryptocurrency Investment for State Pensions

North Carolina lawmakers have scaled back a proposal for state pension investments in cryptocurrencies, particularly Bitcoin, following concerns from stakeholders. The revised House Bill 92 reduces crypto investment limits and introduces oversight measures. Generational divides in support are evident; despite backing from younger politicians, notable skepticism persists among older lawmakers. Treasurer Briner advocates for the changes to improve poor investment performance and increase potential annual returns.

North Carolina lawmakers have reconsidered the proposal to invest state pensions in cryptocurrencies like Bitcoin due to concerns from state workers and legislators. House Bill 92, which aimed to empower Treasurer Brad Briner to invest billions from the State Pension Plan in digital assets, has undergone revisions.

The adjustments include a new limit on crypto investments, reducing the cap from 10% to 5% of the pension fund, along with the establishment of an advisory board to oversee investment strategies. This would prevent the Treasurer from making independent investment decisions.

Supporters of the amended plan, including Treasurer Briner, highlight the significant returns from Bitcoin over the last decade. However, critics caution that the speculative nature of cryptocurrencies may pose risks, potentially leading to significant financial losses for retirees.

This proposal has also revealed generational divides within the legislature. Younger politicians tend to support the measure, while older lawmakers express skepticism. Despite some backing from within the GOP, considerable opposition exists, prompting changes to soften the initial approach.

Briner has acknowledged the need for reforms, arguing that North Carolina ranks poorly in investment returns compared to other states. He noted that adopting better investment tactics could potentially increase pension profits significantly, impacting the state budget positively. With over $100 billion in investments, the potential $2 billion annual gain could allow for greater fiscal flexibility.