North Carolina bill proposes allowing tax payments using crypto

North Carolina lawmakers have introduced a bill that seeks to allow the use of digital assets in tax payments and other economic transactions, marking the latest crypto-related legislative effort in the state.

Representative Neal Jackson filed H.B. 920, the Digital Asset Freedom Act, on Thursday with two co-sponsors.

"Digital assets are recognized as a valid medium of exchange in North Carolina," the bill said. "A transaction shall not be denied legal effect or enforceability solely because it uses a digital asset."

The Digital Asset Freedom Act outlines the criteria that digital assets must meet to be considered eligible. It requires a digital asset to have at least $750 billion in market capitalization and a daily trading volume of at least $10 billion to ensure liquidity and market depth. 

The bill added that an eligible digital asset should have at least a 10-year track record of operating in an open market, with proven security and resistance to censorship.

It also emphasizes decentralization, requiring digital assets to have launched fairly, without pre-mining, insider allocations or central authority control, and to avoid reliance on a single entity or small group of insiders for operation and governance. The bill does not, however, mention any specific cryptocurrencies, including bitcoin.

H.B. 920 adds to the wave of crypto-focused bills in North Carolina, as state interest in bitcoin rises under pro-crypto U.S. President Donald Trump's leadership.

The introduction of the new bill follows two others — House Bill 506 and Senate Bill 709 — filed last month seeking to establish an investment authority with the power to invest up to 5% of various pension funds in cryptocurrencies.

North Carolina lawmakers have also submitted two bills — House Bill 92 and Senate Bill 327 — proposing to authorize the State Treasurer to invest in bitcoin.