North Carolina Proposes Digital Asset Freedom Act, Recognizing Bitcoin

North Carolina Representative Neal Jackson introduced the Digital Asset Freedom Act on April 10, 2025. This bill proposes that qualifying digital assets be accepted as a legally recognized form of payment and for tax purposes. Although the bill does not explicitly mention Bitcoin, it outlines several provisions that uniquely qualify Bitcoin under its definition of a digital asset. These include a minimum market capitalization of $750 billion, a daily trading volume of over $10 billion, a market history of 10 years or more, proven censorship resistance, proof-of-work consensus, lack of a central authority, 99.98% or more network uptime, and a maximum supply cap. The bill emphasizes that decentralized digital assets, which are not governed by any central entity, align with economic principles of limited, noninflationary money and ensure the security and integrity of transactions.

Jackson's bill is the latest in a series of state-led initiatives in the United States aimed at addressing inflation concerns, high federal debt, and a depreciating currency. These efforts reflect a growing interest in digital assets as a strategic reserve. North Carolina has also taken a firm stance against central bank digital currencies (CBDCs). Former Governor Roy Cooper vetoed a bill banning CBDCs in July 2024, characterizing it as premature and reactionary. However, the North Carolina House of Representatives overrode Cooper's veto in August 2024 with a 73-41 vote, and the Senate followed suit in September 2024 with a 27-17 vote, passing the anti-CBDC legislation into law.

The introduction of the Digital Asset Freedom Act has sparked discussions about the future of digital assets and their role in the economy. While some view this as a progressive step towards financial innovation, others have raised concerns about potential risks and challenges, including security, volatility, and the need for robust regulatory frameworks. The bill is part of a broader legislative agenda that includes other significant measures, such as the ABC & Gaming Omnibus Bill, reflecting the state's commitment to addressing contemporary issues and adapting to the evolving economic landscape. As the bill progresses through the legislative process, it will be closely watched by stakeholders in the digital asset community and beyond, who are eager to see how North Carolina navigates the complexities of integrating digital currencies into its financial system.