North Carolina’s H.B. 920 Could Change Transactions Forever

TLDR

• North Carolina has five crypto-related bills going through the legislative process.
• H.B. 920 could officially legalize digital asset transactions, including paying state taxes.
• Republican Representative Neal Jackson introduced the bill.

North Carolina is making headlines with its latest move toward crypto adoption. A newly proposed bill, H.B. 920, also known as the Digital Asset Freedom Act, aims to officially legalize the use of digital assets for economic transactions, including tax payments. 

While this is one of the coolest pieces of legislation we’ve seen thus far, it’s important to note it’s only been proposed/introduced. Here’s why it could matter and what you need to know. Let’s get after it.

The Digital Asset Freedom Act

On Thursday, Representative Neal Jackson, along with two co-sponsors, filed H.B. 920 in the North Carolina General Assembly. 

What’s the headline grabber here? The bill recognizes digital assets as a legitimate medium of exchange, making it possible for you to use crypto in transactions like paying taxes.

The kicker? It’s not a free-for-all. The bill outlines rigorous criteria for what digital assets can actually qualify. It’s a legislative attempt to make sure tokens used have some stability and security while navigating the often-volatile world of crypto.

Dypto Crypto’s Two Pennies

According to the criteria set forth in the bill as it stands, included tokens will be BTC, ETH, USDT, and even DOGE. 

As strange as it is to write these words, USDC wouldn’t make the cut. It wasn’t founded until 2018. So, IF (pretty big if to be honest) this bill does make it all the way to the finish line, we look for it to be heavily amended.

More on the proposed criteria below.

What H.B. 920 Says About Crypto Use

H.B. 920 emphasizes that digital transactions shouldn’t be stripped of legality simply because they involve cryptocurrencies. The legislation explicitly states:

“A transaction shall not be denied legal effect or enforceability solely because it uses a digital asset.”

The legal recognition could pave the way for broader crypto acceptance in both public and private economic transactions.

However, there’s a glaring caveat. Not just any crypto token can be used. The bill aims to create guidelines that guarantee market liquidity, security, and decentralization for eligible assets. Sorry FARTCOIN holders…

The Eligibility Checklist 

If you’re wondering what makes a crypto asset eligible, here’s the breakdown straight from the bill:

• Market Capitalization: Must have a minimum market cap of $750 billion.
• Daily Trading Volume: $10 billion or more in daily trading volume.
• Longevity: Operating in an open market for at least 10 years.
• Security and Censorship Resistance: Proven security features and protection against censorship.
• Decentralization: Only assets with no central authority, pre-mining, or insider allocations can qualify. Essentially, the cryptocurrency must not be controlled by a single entity or a small group of people.

North Carolina is trying to err on the side of caution here. They prioritize stability and reliability in the assets that allow these transactions. But after giving the bill a quick once over, we see a lot of holes that will have to be patched before this thing gets passed.

North Carolina’s Growing Crypto Interest

This isn’t North Carolina’s first foray into the crypto space. H.B. 920 is part of a growing trend of blockchain-friendly legislation in the state. Earlier this year, lawmakers filed four crypto-centric bills:

1. House Bill 506 and Senate Bill 709 seek to establish an investment authority. This would allow up to a percentage of various pension funds to be invested in cryptocurrencies. 
2. House Bill 92 and Senate Bill 327 propose that the State Treasurer be allowed to invest in Bitcoin directly.

The Broader Context

North Carolina’s legislative push comes at a time when U.S. interest in cryptocurrencies is growing under the pro-crypto leadership of President Donald Trump. While many states are still hesitant to fully legislate the adoption of blockchain-based technology, North Carolina seems to be taking a different approach by rolling out the red carpet for crypto regulation.

Other states with significant crypto initiatives include Kentucky and Texas, but North Carolina’s focus on transaction eligibility makes it unique. Concentrating on market size, longevity, and decentralization could set a precedent for the Digital Asset Freedom Act and how other states approach similar legislation.

How Legislation Impacts New Crypto Users

If you’re exploring crypto for personal or professional use, this bill could be a game-changer. Here’s what to keep in mind:

1. Legitimacy and Flexibility – Should H.B. 920 pass, don’t underestimate its potential impact. Paying your taxes with crypto? That could soon become a reality, which is not something we thought we’d see any time soon.
2. Focus on Stability – New crypto users can often feel like they’re stepping into a financial minefield. With strict guidelines around eligible digital assets, North Carolina wants to minimize those risks, favoring well-established cryptocurrencies.
3. A Gateway to Mass Adoption – We had to say it. Recognition of crypto as a legal medium of exchange is a huge step forward. It opens the door for more widespread adoption at both state and federal levels, creating opportunities for users and businesses to engage with crypto.

The Nitty Gritty

While H.B. 920 demonstrates North Carolina’s ambitious push toward crypto acceptance, it’s still just a proposal. Lawmakers will need to debate, revise, and eventually vote on the bill before it becomes law. For crypto enthusiasts in the state, this is something to watch closely.

Write to whoever you need to write to. Email. Call. Whatever you have to do to help these bills get passed.

If passed, they could set North Carolina apart as a trailblazer in blockchain legislation, creating an ecosystem where digital assets are seamlessly integrated into economic transactions.

The Digital Asset Freedom Act is more than just a legislative experiment. It’s a potential blueprint for the future of crypto in the US. For new crypto users, especially those based in North Carolina, this bill could make digital assets not just a speculative investment but a functional tool in everyday transactions.