North Carolina Lawmaker Proposes Digital Asset Freedom Act to Support Cryptocurrency Use

     

North Carolina has introduced new legislation aimed at recognizing digital assets as a valid medium for transactions and tax payments, marking another step by U.S. states to establish policies supportive of cryptocurrencies.

On April 10, 2025, Representative Neal Jackson presented the North Carolina Digital Asset Freedom Act to the state legislature. The bill proposes that certain qualified digital assets would be accepted for both economic transactions and tax payments within the state.

While the proposed legislation does not specifically reference Bitcoin by name, its outlined requirements closely align with the characteristics of Bitcoin. These criteria include a market capitalization of at least $750 billion, a daily trading volume exceeding $10 billion, a proven operational history of at least 10 years, demonstrated resistance to censorship, reliance on a proof-of-work consensus mechanism, no central controlling authority, network uptime of 99.98% or higher, and a fixed supply limit.

The bill explains that:

“The General Assembly further finds that decentralized digital assets, which are not governed by any central entity or foundation, align with the economic principles of limited, noninflationary money and are capable of ensuring the security and integrity of transactions.”

Jackson’s proposal reflects a growing trend among U.S. states pursuing legislation designed to safeguard their financial systems against rising inflation, increasing federal debt, and currency devaluation. These efforts often focus on integrating Bitcoin and other cryptocurrencies into state financial frameworks.

North Carolina Strengthens Opposition to Central Bank Digital Currencies (CBDCs)

The introduction of the Digital Asset Freedom Act follows North Carolina’s recent legislative actions opposing central bank digital currencies (CBDCs). In July 2024, then-Governor Roy Cooper vetoed a bill intended to ban the use of CBDCs within the state, describing it as “premature, vague, and reactionary” in response to risks that had yet to materialize.

Despite the governor’s objections, the North Carolina House of Representatives voted to override Cooper’s veto in August 2024 with a 73-41 vote that demonstrated bipartisan support. Subsequently, the North Carolina Senate voted 27-17 in September 2024 to also override the veto, officially enacting the anti-CBDC legislation into law.

Dan Spuller, head of industry affairs at the Blockchain Association, a crypto advocacy group, publicly supported the legislature’s decision to override the veto. In a post on X dated September 9, Spuller criticized Governor Cooper’s initial veto:

“This bill should have never been vetoed, and Governor Cooper blew an opportunity to send a strong message to the Federal Reserve that NC stands united against CBDCs,” Spuller wrote.

North Carolina’s actions place it among several U.S. states adopting proactive measures in regulating digital assets while rejecting the development and use of government-issued digital currencies.