The new Digital Asset Freedom Act may soon make it possible to pay state taxes in bitcoin.
A new bill in North Carolina, introduced on April 10 by Representative Neal Jackson along with two co-sponsors, aims to legally recognize digital assets like Bitcoin for economic transactions, including tax payments.
House Bill 920, titled Digital Asset Freedom Act, clearly states that “digital assets are recognized as a valid medium of exchange in North Carolina.”
The bill sets strict criteria for eligible digital assets, requiring a market capitalization of at least $750 billion and a daily trading volume of at least $10 billion, ensuring sufficient liquidity and market depth. It also emphasizes the importance of a 10+ year operating track record, proven security, 99.98% uptime or higher, a proof-of-work consensus mechanism, and censorship resistance. It further stresses decentralization, requiring assets to be fairly launched, with no pre-mining, privileged allocations, or control by central authorities. While Bitcoin is not explicitly named, the bill’s requirements clearly point to it as the intended asset.
Crypto-focused legislation in North Carolina
H.B. 920 adds to a growing list of crypto-related legislative initiatives in the state. Last month, lawmakers introduced House Bill 506 and Senate Bill 709, which aim to establish an investment authority with the power to allocate up to 5% of various pension funds into cryptocurrencies.
Additionally, two more proposals — House Bill 92 and Senate Bill 327 — would authorize the State Treasurer to invest in Bitcoin.
