Oklahoma signs law protecting crypto transactions, mining and self-storage

Oklahoma has taken an important step by passing a bill to protect bitcoin rights, marking a historic moment in digital asset legislation. Governor Kevin Stitt signed the bill on May 13, 2024.

Led by Representative Samuel Brian Hill and Senator Coleman, the legislation establishes crucial protections for holders of Bitcoin and digital assets. Taking effect on November 1, 2024, the law guarantees the fundamental rights of individuals and businesses engaged in digital asset activities, positioning Oklahoma as a leader in the digital economy.

Legalization of cryptocurrency mining

The new crypto bill legalizes cryptocurrency mining for Oklahoma residents, both at home and on an industrial scale, provided they comply with local noise ordinances. This is a significant development for Oklahoma, which has already attracted crypto mining companies. For example, Polaris Technologies announced in February that it would invest $100 million to build a 200-megawatt mining facility outside Tulsa.

Dennis Porter, CEO and co-founder of the Satoshi Action Fund, highlighted the importance of state-level initiatives, emphasizing that Americans should recognize the important policy opportunities available at the state level. He pointed out that throughout history, various movements and industries have leveraged state initiatives to achieve powerful victories. Satoshi Action Fund is now ready to propel the Bitcoin and the digital asset ecosystem following a similar trajectory.

The bill contains several key provisions. It guarantees the right to custody, allowing individuals to securely hold their digital assets. It allows the use of Bitcoin and other digital currencies for transactions without additional taxes, bringing digital assets in line with traditional legal tender in tax treatment. This aims to streamline the use of cryptocurrencies in everyday transactions and foster a more inclusive financial environment.

Bitcoin mining support

Supporting Bitcoin mining is another key aspect of the bill. It protects the right to mine bitcoins both domestically and in commercial operations. By providing legal clarity and stability, Oklahoma hopes to attract more blockchain businesses and investments. The legislation prevents local governments from imposing restrictive measures specifically targeting mining activities, such as additional noise ordinances, while still complying with general noise regulations.

Porter highlighted Oklahoma’s proactive stance by saying the state has demonstrated its commitment to protecting Bitcoiners’ right to access technology. The bill also states that the Oklahoma Corporation Commission may not create discriminatory rate schedules for mining companies that ensure fair utility rates and encourage sustainable and economically viable mining practices.

Role of the Satoshi Action Fund

The Satoshi Action Fund, led by Dennis Porter, played a central role in promoting the bill. The fund highlights the importance of personal custody and mining rights, arguing that these rights are fundamental to financial sovereignty and innovation. They have led similar legislative efforts in other states, marking this as a victory in their broader campaign to protect rights to digital assets.

The bill is based on a model policy from the Satoshi Action Fund. Porter noted that while this is the first state to pass such a law, a stripped-down version of this bill was passed last year in Montana and Arkansas. He hopes that these pro-bitcoin policies will become a model for the nation and the world.

The Oklahoma Bitcoin Association, led by Storm Rund, played a crucial role in passing the bill. Their lobbying and outreach efforts gained legislative support. Eric Peterson, political director of the Satoshi Action Fund, also made important contributions. The legislation is seen as a step toward greater adoption of digital currencies, aimed at attracting businesses, fostering innovation and creating economic opportunities, particularly in rural areas benefiting from Bitcoin mining.

Future impact and inspiration nationally

When the bill takes effect on November 1, 2024, it will set a precedent for other states. The law provides clear legal protection for Bitcoin users and supports new market entrants. By ensuring legal certainty, Oklahoma is positioning itself at the forefront of the digital financial revolution. This legislation aims to attract blockchain companies, stimulate innovation and create economic opportunities, particularly in rural areas.

By protecting the right to mine in Oklahoma, the bill prevents any future attempts, like those seen in New York and North Carolina, to ban cryptocurrency mining. It also ensures that any person operating a cryptocurrency node or otherwise operating a node will not be required to obtain a money transmitter license and ensures that any person operating a node or staking as a service will not will not be held responsible for a specific transaction simply by validating that transaction.

Oklahoma’s proactive approach will likely inspire similar measures nationwide, furthering its leadership role in regulating digital assets. The bill’s success demonstrates the power of targeted advocacy and strategic legislative action to shape the future of Bitcoin.

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