Oklahoma has become the first state in the country to pass comprehensive laws protecting the rights of citizens to self-manage digital assets and engage in cryptocurrency mining activities. Governor Kevin Stitt signed HB3594, the ‘Bitcoin Rights’ bill, on Monday, establishing a legal framework for blockchain technology and digital assets in the state.
TLDR
- Oklahoma has become the first state in the country to pass a law protecting the right to self-manage Bitcoin and other digital assets using hardware wallets.
- The new law prohibits states from banning or restricting the use of cryptocurrencies to purchase legitimate goods and services.
- Home digital asset mining is now legal in Oklahoma, as long as miners comply with local noise ordinances.
- The bill protects individuals and companies engaged in cryptocurrency mining or node operations from liability related solely to transaction verification.
- The bill provides that a money transmitter license is not required to mine digital assets, operate a node, or participate in blockchain staking.
The new bill, inspired by the Satoshi Action Fund’s model policy, ensures that Oklahoma residents cannot be prevented from using hardware wallets to hold and control digital assets.
It also provides a level playing field for cryptocurrency users by prohibiting states from banning or restricting the use of cryptocurrencies to purchase legitimate goods and services.
One of the key aspects of the bill is the protection it provides to cryptocurrency miners. Home digital asset mining is now legal in Oklahoma, as long as miners comply with local noise ordinances.
The law also allows companies to engage in industrial-scale mining operations without facing specific noise limits beyond those already established for data centers.
The bill protects individuals and businesses engaged in cryptocurrency mining or node operations from liability related solely to transaction verification. This establishes that a funds transmitter license is not required to mine digital assets, operate nodes, or engage in blockchain staking.
The bill’s passage comes at a time when the cryptocurrency industry is facing increasing regulatory scrutiny at the federal level. In the absence of a clear regulatory framework from Congress, federal regulators have largely come to regulate the cryptocurrency industry through enforcement actions against companies and developers.
A recent crackdown on cryptocurrency mixing services and privacy tools has raised concerns among cryptocurrency advocates about the possibility of future bans on self-management rights.
Oklahoma’s new law actively addresses these issues by making self-custody a fundamental right.
The bill’s sponsor, Republican state Rep. Brian Hill, emphasized the bill’s importance in protecting individuals’ rights to digital assets.
The Satoshi Action Fund, which has helped introduce similar legislation in 15 other states, believes more states will follow Oklahoma’s lead in passing cryptocurrency-friendly legislation.
With the new law taking effect on November 1, 2024, Oklahoma is establishing itself as a welcoming destination for cryptocurrency companies and investors.
The state has already attracted significant investment in the cryptocurrency mining industry, with companies such as Polaris Technologies announcing plans to build large-scale mining facilities in the state.