Technology

HB 920, the NC Digital Asset Freedom Act, allows North Carolina residents and businesses to use qualifying digital assets for everyday transactions and tax payments. To qualify, digital assets must meet strict criteria including 10 years of security, $750 billion market capitalization, decentralized governance, proof-of-work security, and U.S. regulatory classification as a non-security. The bill recognizes these assets as legally valid payment methods (preventing denial of enforceability) and permits tax payments to the state using them, requiring reporting of U.S. dollar equivalents at transaction time. It also mandates privacy protections for users and imposes a $2,000 daily transaction limit for new users of digital asset kiosks to prevent fraud.

This bill establishes a regulatory framework for North Carolina banks and credit unions to offer digital asset services, such as custody, staking, and transaction processing. It requires these financial institutions to notify state regulators before starting custody services and obtain specific approval if they intend to manage customer assets in a fiduciary capacity. The legislation also mandates clear written agreements between institutions and customers, explicitly stating that digital assets held by the bank are not insured deposits or liabilities of the institution. By defining key terms like digital assets and staking, the act aims to provide legal clarity and safety standards for the growing digital asset market within the state.

HB 819 creates North Carolina's Longitudinal Data System, which links student education data (like test scores, graduation records, and course enrollment) with workforce data (such as employment and wages) to track student outcomes. It directly affects public schools, universities, the Department of Public Instruction, and workforce agencies by requiring them to share de-identified student data through this centralized system. Key provisions include strict privacy safeguards (complying with FERPA and HIPAA), mandatory data security plans, a 5-year limit on linking education and workforce data, and annual reporting requirements for the system's oversight body. The bill aims to improve education policy decisions while ensuring data privacy and security for students.