On April 10, 2025, North Carolina took a significant step in supporting the adoption of digital assets by introducing the Digital Asset Freedom Act. Proposed by Representative Neal Jackson, the bill seeks to recognize certain digital assets—such as Bitcoin—as a legally accepted form of payment and for tax purposes. This move marks a key moment in the broader movement across U.S. states to hedge against inflation with decentralized currencies. By introducing this bill, North Carolina aims to solidify its position as a forward-thinking state in the cryptocurrency space, joining the ranks of other states moving toward comprehensive crypto legislation.
But this bill is more than just a legislative formality; it reflects a larger trend within the U.S. to consider Bitcoin and other decentralized assets as legitimate alternatives to fiat currency. Let’s break down the bill’s details, its potential impact, and what it means for the future of Bitcoin regulation in the U.S.
The Digital Asset Freedom Act: Key Provisions
The Digital Asset Freedom Act lays out a framework that recognizes certain digital assets—particularly Bitcoin—as valid for use in payments and taxation. While the bill doesn’t explicitly name Bitcoin, it provides clear criteria that fit Bitcoin’s profile.
Some of the defining stipulations include:
- Market Capitalization: Digital assets with a market capitalization of at least $750 billion.
- Daily Trading Volume: A minimum daily trading volume of $10 billion.
- Proven Censorship Resistance: The digital asset must be censorship-resistant, which Bitcoin achieves through its decentralized nature.
- Proof-of-Work Consensus: The bill emphasizes the importance of proof-of-work consensus algorithms, which Bitcoin famously uses.
- Limited Supply and Network Uptime: The asset must have a fixed maximum supply and a network uptime rate of 99.98% or higher.
These criteria effectively point directly to Bitcoin, given its long-established market history, decentralization, and the strict characteristics outlined in the bill.
The bill further emphasizes that decentralized digital assets align with the economic principles of “limited, noninflationary money,” ensuring the security and integrity of transactions, which makes them a potential hedge against inflation—a key concern for many in today’s economic environment.
Bitcoin’s Role in North Carolina’s Anti-CBDC Stance
This bill isn’t just about legitimizing Bitcoin—it also highlights North Carolina’s growing opposition to Central Bank Digital Currencies (CBDCs). In 2024, the state passed a law banning the use of CBDCs, following a veto by former Governor Roy Cooper. The veto was overridden by both the state House and Senate, and the anti-CBDC legislation was enacted in a rare bipartisan move.
This action puts North Carolina firmly at odds with the federal push for CBDCs, which are digital versions of national currencies controlled by central banks. Proponents of CBDCs argue that they could modernize the financial system and enhance payment efficiencies, while critics believe they could lead to greater government surveillance and control over individuals’ finances.
By supporting decentralized assets like Bitcoin through the Digital Asset Freedom Act, North Carolina is signaling its commitment to financial independence and resistance to centralized, government-controlled digital currencies.
Dan Spuller, the head of industry affairs at the Blockchain Association, praised North Carolina’s stance, stating that the vetoed anti-CBDC bill presented an opportunity to challenge federal moves for central bank digital currencies. Spuller emphasized that North Carolina’s actions send a strong message against the potential rise of CBDCs, which many argue could undermine privacy and financial autonomy.
A Growing Trend in U.S. States: More Crypto-Friendly Legislation
North Carolina is part of a growing movement among U.S. states to pass legislation that supports the use of digital assets as legal tender. As inflation concerns rise and fiat currencies continue to lose value, states are looking to Bitcoin and other cryptocurrencies as a hedge. By establishing clear frameworks for digital assets, states like North Carolina are taking the initiative to ensure their economies remain competitive in an increasingly digital financial world.
This trend can be seen in states such as Wyoming, Texas, and Florida, which have already introduced or passed similar crypto-friendly laws. As more states recognize the potential of digital currencies like Bitcoin to drive economic growth, North Carolina’s proposed Digital Asset Freedom Act further solidifies the state’s commitment to becoming a hub for blockchain innovation and decentralized finance.
Potential Impact of the Digital Asset Freedom Act
The Digital Asset Freedom Act is more than just a legislative proposal—it represents a shift in how digital assets could be treated across the United States. If passed, it could serve as a model for other states looking to introduce similar regulations, potentially leading to more widespread recognition of Bitcoin and other cryptocurrencies as legitimate forms of payment.
For businesses in North Carolina, this bill could open up new opportunities for accepting digital assets as a form of payment, further embedding cryptocurrencies into the state’s financial infrastructure. It could also encourage crypto entrepreneurs to set up operations in North Carolina, attracted by the legal clarity and support for decentralized finance.
On a broader scale, the bill could accelerate the mainstream adoption of Bitcoin as a viable alternative to traditional fiat currencies. As more states pass legislation that supports digital assets, the federal government may find it increasingly difficult to ignore the growing influence of cryptocurrencies, potentially leading to more comprehensive federal regulations in the future.
Conclusion: A Bold Move for Financial Sovereignty
North Carolina’s Digital Asset Freedom Act is a bold move toward establishing Bitcoin as a legally recognized form of payment and tax settlement. The bill not only supports the growing interest in cryptocurrencies but also aligns with the state’s opposition to the rise of Central Bank Digital Currencies (CBDCs). By embracing decentralized assets like Bitcoin, North Carolina is positioning itself as a leader in the fight for financial sovereignty, offering a model for other states and even countries to follow.
As more U.S. states pass similar laws, it will be fascinating to watch how these developments influence federal policy. Will the federal government push for stricter regulation, or will it take cues from these state-level initiatives to embrace the digital asset revolution? One thing is certain: the future of Bitcoin and other digital assets in the United States is becoming clearer, with North Carolina leading the way.
