North Carolina lawmakers filed a new bill on April 11 that could allow cryptocurrency to be used to pay taxes and conduct other economic transactions. 

Rep. Neal Jackson and two co-sponsors filed the legislation. If passed, it would significantly change how the state handles crypto assets.

What is the “Digital Asset Freedom Act” (HB 920)?

The bill, known as the Digital Asset Freedom Act (HB 920), seeks official recognition for digital assets as valid exchange mediums in North Carolina. 

It specifies that crypto-based deals cannot be denied legal standing simply because they use crypto. This rule might open doors for wider public and private crypto use.

Related: No Crypto Tax? White House ‘Czar’ Shoots Down Transaction Fee

Why Do HB 920’s Strict Rules Seem Tailor-Made for Bitcoin Only?

However, qualifying crypto assets must meet tough standards: $750B market cap and $10B daily volume minimums are required. Additionally, the asset must have operated on the open market for at least ten years and demonstrate security and decentralization. 

The bill avoids naming any specific cryptocurrency focusing instead on structural and performance-based criteria to determine which assets qualify. Yet, with the requirement, Bitcoin is the only crypto asset that qualifies.

Could North Carolinians Soon Pay Taxes With Bitcoin?

One of the bill’s key provisions is the potential use of qualifying digital assets for paying state taxes. 

Beyond tax payments, the bill also allows other economic transactions to be conducted in digital assets, provided they meet the set standards.

Legislative Momentum Behind Crypto in North Carolina

HB 920 follows a growing trend of crypto-related legislation in the state. In March, lawmakers introduced two bills, House Bill 506 and Senate Bill 709. These bills seek to create a public investment authority that places up to 5% of state pension funds into cryptocurrencies. 

Related: Governor’s Veto Overruled: North Carolina Takes a Stand Against Federal CBDC

Meanwhile, another pair of bills, House Bill 92 and Senate Bill 327, propose authorizing the state treasurer to invest directly in Bitcoin.

This latest fits a national pattern towards crypto acceptance, helped by President Trump’s support. While not law yet, HB 920 shows NC’s growing readiness for digital assets in state finance.