State pension plans in the U.S. are increasingly investing in cryptocurrencies, unlike private pension plans restricted by ERISA regulations. Attorney Allie Itami explains that the Employee Benefits Security Administration (EBSA) has issued guidance cautioning private plans due to crypto's volatile nature. This has limited private pension investments in digital assets.

Meanwhile, state funds like Wisconsin and Michigan have invested in Bitcoin ETFs, with Michigan expanding into Ethereum trusts. Florida's CFO, Jimmy Patronis, advocates for Bitcoin in state pensions, citing its potential as "digital gold" and a hedge against inflation.