The North Carolina Retirement Systems began investing in holdings tied to cryptocurrency in recent years, and in 2025, state lawmakers began pushing for a law that could enable even more direct investments in Bitcoin and other options, over the objection of state employees whose paychecks fund the pension plan.

The proposal to ramp up the pension plan’s crypto investments passed the state House last year and could be taken up this year by the state Senate. The legislature is expected to return to session in March. But in the last few months, the state has seen more than half the value of its cryptocurrency investments wiped out, with losses on paper totaling tens…