North Carolina Lawmaker Proposes Digital Asset Freedom Act

6 months ago

KEY FACTS: North Carolina State Representative Neal Jackson introduced the Digital Asset Freedom Act, a bill aimed at recognizing cryptocurrencies like Bitcoin as a valid medium of exchange within the state. The legislation would allow residents to use digital assets to pay state taxes and seeks to establish a clear regulatory framework to foster blockchain innovation while addressing risks like fraud and volatility. The bill could attract blockchain businesses and create jobs, building on the state’s recent crypto-friendly policies, such as allocating retirement funds to cryptocurrencies and rejecting central bank digital currencies.

Source: Seal of North Carolina

North Carolina Lawmaker Proposes Digital Asset Freedom Act

North Carolina State Representative Neal Jackson introduced the North Carolina Digital Asset Freedom Act on April 10, 2025. The proposed legislation aims to recognize digital assets, such as Bitcoin and other cryptocurrencies, as a valid means of exchange within the state while allowing residents to use these assets to pay state taxes. The bill, if passed, could foster economic growth and attract blockchain-based businesses to the Tar Heel State.

The Digital Asset Freedom Act seeks to create a clear regulatory framework for digital assets, addressing a sector that has often faced uncertainty due to inconsistent federal and state policies.

The legislation, recognizing cryptocurrencies as a legitimate form of payment, would enable businesses and individuals to transact with digital currencies for goods, services, and even tax obligations. This move shows a growing trend among U.S. states to integrate digital assets into their financial systems as lawmakers nationwide grapple with the implications of decentralized finance and blockchain technology.

Representative Jackson, a Republican from Moore County, emphasized the potential economic benefits of the legislation during a press conference announcing the bill. In his words:

“North Carolina has a unique opportunity to embrace the future of finance,”...“By recognizing digital assets as a valid medium of exchange, we can attract innovative businesses, create jobs, and position our state as a leader in the digital economy. This is about fostering growth while ensuring consumer protections and regulatory clarity.”

The proposed emerges as cryptocurrencies like Bitcoin have gained mainstream traction, with their market value soaring and institutional adoption increasing. However, the volatility of digital assets and concerns about fraud, money laundering, and consumer protection have prompted calls for clearer regulations. With these in mind, the Digital Asset Freedom Act aims to strike a balance by providing guidelines that encourage innovation while addressing these risks.

One of the most groundbreaking provisions of the bill is its proposal to allow North Carolina residents to pay state taxes using digital assets. If enacted, this would make North Carolina one of the first states in the U.S. to accept cryptocurrencies for tax payments, following in the footsteps of jurisdictions like Colorado, which passed similar legislation in 2022. The bill outlines a process where the state would convert digital asset payments into U.S. dollars at the time of transaction to ensure stability and compliance with existing tax frameworks.

NC Digital Asset Freedom Act. Source: North Carolina Legislature

The legislation also builds on North Carolina’s recent efforts to integrate digital assets into its economic strategy. In March 2025, state lawmakers introduced bills to allocate up to 5% of state retirement funds to cryptocurrencies as a legitimate investment class. Additionally, North Carolina passed anti-CBDC (Central Bank Digital Currency) legislation in September 2024, overriding a veto by Governor Roy Cooper. That law prohibited the state from participating in Federal Reserve tests of digital currencies, reflecting a preference for decentralized cryptocurrencies over government-controlled alternatives.

Dan Spuller, head of industry affairs at the Blockchain Association, praised North Carolina’s proactive approach to digital assets. Spuller said in a statement:

“The Digital Asset Freedom Act is a significant step forward... By recognizing digital assets as a valid means of exchange and allowing tax payments in cryptocurrencies, North Carolina is sending a clear message that it welcomes innovation and wants to be at the forefront of the blockchain revolution.”

The bill has also drawn criticism. Some lawmakers and consumer advocates have raised concerns about the risks associated with cryptocurrencies, including their volatility and potential for illicit use. State Senator Rachel Hunt, a Democrat from Mecklenburg County, cautioned that while innovation is important, the state must prioritize consumer protections. Hunt said:

“We need to ensure that any legislation involving digital assets includes robust safeguards to protect residents from fraud and financial instability. The crypto market has seen significant scams and collapses in recent years, and we can’t ignore those lessons.”

The Digital Asset Freedom Act also arrives in the context of broader national developments in cryptocurrency regulation. In January 2025, President Donald Trump signed an executive order to establish a Strategic Bitcoin Reserve and a Digital Asset Stockpile using cryptocurrencies forfeited in government criminal cases. Meanwhile, the U.S. Senate Banking Committee has advanced bipartisan legislation, such as the GENIUS Act, to create a regulatory framework for stablecoins—digital currencies pegged to assets like the U.S. dollar. These federal efforts underscore the growing recognition of digital assets as a permanent fixture in the global economy.

North Carolina has already established itself as a hub for technology and finance, with cities like Raleigh and Charlotte attracting major corporations and startups alike. By passing the Digital Asset Freedom Act, North Carolina could further enhance its reputation as a forward-thinking state, drawing blockchain companies, crypto exchanges, and fintech startups to its borders. Industry experts estimate that the global blockchain market could reach $1.4 trillion by 2030, and states that position themselves early stand to gain significant economic advantages.

The bill’s introduction has sparked lively debate within the state legislature. Supporters argue that it aligns with North Carolina’s history of embracing innovation, from its early adoption of research universities to its role in the tech boom of the Research Triangle. They point to states like Wyoming and Texas, which have passed crypto-friendly laws and seen an influx of blockchain businesses, as models for success. The bill must pass through committees in the North Carolina House and Senate before reaching the floor for a full vote. If successful, it could go to Governor Cooper’s desk for approval, though his previous veto of crypto-related legislation suggests he may approach the bill with skepticism. For now, Representative Jackson remains optimistic about the bill’s prospects.

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