North Carolina Introduces Bill to Allow Digital Assets in Tax Payments
North Carolina lawmakers have introduced a new bill, H.B. 920, aimed at recognizing digital assets as a valid medium of exchange for tax payments and economic transactions within the state.
Known as the Digital Asset Freedom Act, the bill seeks to integrate cryptocurrency into the state’s financial framework, ensuring that transactions made with digital assets are legally recognized and enforceable.
Criteria for Eligible Digital Assets
The bill sets clear criteria for digital assets to qualify for use in economic transactions. To be considered eligible, a digital asset must meet the following conditions:
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Market Capitalization: At least $750 billion.
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Trading Volume: A daily trading volume of at least $10 billion.
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Proven History: A minimum of 10 years of operation in an open market.
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Security and Censorship Resistance: Proven security measures and resistance to censorship.
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Decentralization: The asset must be decentralized, free from insider control or central authority.
The bill does not specify any particular cryptocurrencies, leaving it open-ended but emphasizing decentralized, secure, and widely adopted digital assets, possibly signaling support for established cryptocurrencies like Bitcoin.
Growing Crypto-Friendly Legislation in North Carolina
The introduction of the Digital Asset Freedom Act comes as part of a larger wave of crypto-related legislative efforts in North Carolina. The state has been actively exploring ways to incorporate cryptocurrencies into its economy. Previous bills, including House Bill 506 and Senate Bill 709, have sought to establish an investment authority for cryptocurrencies, and others have focused on allowing the State Treasurer to invest in BTC.
Implications for North Carolina and Beyond
If the Digital Asset Freedom Act passes, it could set a precedent for other states looking to regulate and integrate cryptocurrency into their financial systems. North Carolina’s proactive stance may encourage further adoption of digital assets in mainstream financial transactions and investment, providing a blueprint for other states to follow in the rapidly evolving cryptocurrency space.
Kosta has reported on cryptocurrency markets and blockchain infrastructure since 2020, bringing over six years of hands-on experience in the crypto industry built through daily tracking of markets, trends, and emerging blockchain developments. Specializing in Bitcoin on-chain analysis, institutional ETF flows, and digital asset price action, his work at Coindoo has been cited by other news agencies and consistently covers market developments with a focus on data-driven reporting across Bitcoin, Ethereum, Solana, and XRP. Over the years, Kosta has contributed to multiple crypto media outlets in different regions, authoring over 6,000 articles across the sector. His reporting spans cryptocurrency markets and the broader fintech industry, tracking not only price action but also the technological and regulatory forces shaping the ecosystem. To support his analysis, Kosta actively leverages on-chain data and metrics from leading platforms such as Santiment, Glassnode, and CryptoQuant, enabling deeper, evidence-based market insights. He believes in the power of transparency and the data that underpins the blockchain ecosystem. His academic background in Marketing Management from Denmark further complements his analytical approach, adding a strong understanding of communication strategy and content positioning to his work.
