1. United States
2. N.C.
3. Letter

I am writing as a recipient of a Local Governmental Employees’ Retirement System (LGERS) pension to express my strong opposition to House Bill 92 (HB92), which would permit the State Treasurer to invest up to 5% of state retirement funds in digital assets such as cryptocurrencies, stablecoins, and NFTs. As someone who depends on the stability and security of my pension, I am deeply concerned about exposing our retirement system to the extreme volatility and risk associated with digital assets. Cryptocurrencies and other digital assets are notorious for their unpredictable price swings and vulnerability to theft and cyberattacks. Even the current State Treasurer, Brad Briner, has acknowledged that the volatility of crypto and especially bitcoin is “much, much higher” than is appropriate for the state pension plan. Investing pension funds in such speculative assets is not a prudent strategy for safeguarding the hard-earned retirement savings of public employees and retirees. As Rep. Tracy Clark pointed out during the House debate, this approach amounts to “gambling with retirement funds”. The example of the Bored Ape NFT, which lost 95% of its value after being purchased for $1.3 million, starkly illustrates the dangers of this asset class and the difficulty of integrating digital assets into state investment strategies and retirement plans. It is by no means clear that the Treasurer, or public pension managers in general, have the rules, oversight mechanisms, and requisite experience to take on the additional administrative burdens of managing crypto. Our pension system has a long and proud tradition of being fully funded and managed with caution and responsibility. The LGERS Board follows strict policies to ensure actuarially correct contributions and fiscal stability, and North Carolina’s retirement system has been fully funded for 85 years. Introducing high-risk digital assets undermines this legacy and puts the retirement security of thousands of public servants at unnecessary risk. I urge you to oppose HB92 and protect the financial future of North Carolina’s public employees and retirees. Our pension funds should be managed with the utmost care, not subjected to the uncertainties of the digital asset market. Thank you for your attention to this critical issue.