F.R.E.E. Act

(Freedom of Recognition for Economic Expression Act)

AN ACT:

RELATING TO MONETARY FREEDOM IN PRIVATE CONTRACTS; AFFIRMING THE RIGHT OF PERSONS TO DENOMINATE PRIVATE CONTRACTUAL OBLIGATIONS IN MUTUALLY AGREED UNITS OF ACCOUNT; PROVIDING FOR ENFORCEABILITY; AND ESTABLISHING LIMITATIONS CONSISTENT WITH FEDERAL LAW.

Be it enacted by the Legislature of the State of [STATE]:

Section 1. Short Title

This Act may be cited as the “F.R.E.E. Act” (Freedom of Recognition for Economic Expression Act).

Section 2. Legislative Findings and Purpose

A. Findings
The Legislature finds that:

  1. Freedom of contract is a fundamental component of individual liberty and economic activity.
  2. The designation of a unit of account in a contract constitutes a form of economic expression.
  3. Persons have the right to define the terms of value exchange without undue restriction.
  4. Financial innovation, including digital assets and alternative value systems, requires legal clarity.
  5. Compelled use of a sovereign currency in private agreements may inhibit economic freedom and technological development.

B. Purpose
The purpose of this Act is to:

  1. Affirm that the selection of a unit of account in private contracts is a protected form of economic expression.
  2. Ensure that parties may freely denominate obligations in mutually agreed units of account.
  3. Prohibit state-level interference with lawful monetary choice in private agreements, consistent with federal law.

Section 3. Definitions

For purposes of this Act:

  1. “Person” means any natural person, corporation, limited liability company, partnership, trust, or other legal entity.
  2. “Private contract” means a lawful agreement between two or more persons in which participation is voluntary and the state is not a required party.
  3. “Unit of account” means any mutually agreed measure of value used to denominate an obligation, including but not limited to:
    • United States dollars,
    • Foreign currencies,
    • Commodities,
    • Digital assets,
    • Algorithmic or cryptographic units.

Section 4. Monetary Choice in Private Contracts; Recognition; Enforceability

A. Right to Denominate
Parties to a private contract may denominate obligations in any unit of account of their choosing.

B. Recognition as Lawful Expression
The selection and use of a unit of account in a private contract shall be recognized as a lawful form of economic expression.

C. Enforceability
A private contract shall not be deemed invalid or unenforceable solely because it specifies a unit of account other than United States dollars.

D. Prohibition on Compulsion
Neither the state nor any political subdivision shall require parties to a private contract to denominate obligations exclusively in United States dollars, except as required by federal law.

Section 5. Limitations

This Act does not:

  1. Affect requirements that taxes, fees, or other obligations owed to the state or a political subdivision be payable in United States dollars unless otherwise authorized by law.
  2. Supersede or conflict with federal law, including legal tender laws.
  3. Limit the application of laws relating to fraud, consumer protection, disclosure, or unconscionable conduct.

Section 6. Construction

This Act shall be liberally construed to promote:

  • Freedom of contract,
  • Protection of economic expression, and
  • Innovation and technological neutrality in financial arrangements.

Section 7. Severability

If any provision of this Act or its application is held invalid, the invalidity does not affect other provisions or applications that can be given effect without the invalid provision.

**Section 8. Effective Date

This Act shall take effect on [insert date].

Home