Oklahoma Becomes First U.S. State to Protect Crypto Self-Custody Rights

Oklahoma has become the first U.S. state to pass a comprehensive law protecting citizens’ rights to self-custody digital assets and engage in crypto mining activities. Governor Kevin Stitt signed the ‘Bitcoin Rights’ bill, HB3594, into law on Monday, establishing a legal framework for blockchain technology and digital assets in the state.

TLDR

• Oklahoma has become the first U.S. state to pass a law protecting the right to self-custody Bitcoin and other digital assets using hardware wallets.
• The new law prohibits the state government from banning or restricting the use of crypto to purchase legal 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 businesses engaged in crypto mining or node operation from liabilities related solely to validating transactions.
• The legislation establishes that no money transmitter license is required for engaging in digital asset mining, operating nodes, or participating in blockchain staking.

The new legislation, inspired by the Satoshi Action Fund’s model policy, ensures that Oklahomans cannot be prevented from holding and controlling digital assets using hardware wallets.

It also prohibits the state government from banning or restricting the use of cryptocurrency to purchase legal goods and services, providing a level playing field for crypto users.

One of the key aspects of the bill is the protection it offers to crypto miners. Home digital asset mining is now legal in Oklahoma, as long as miners comply with local noise ordinances.

The law also allows businesses to engage in industrial-scale mining operations without facing specific noise limits beyond those already in place for data centers.

The legislation safeguards individuals and businesses engaged in crypto mining or node operation from liabilities related solely to validating transactions. It establishes that no money transmitter license is required for engaging in digital asset mining, operating nodes, or participating in blockchain staking.

The passage of this bill comes at a time when the crypto industry faces increasing regulatory scrutiny at the federal level. In the absence of a clear regulatory framework from Congress, federal regulators have been left to regulate the crypto industry largely through enforcement actions against companies and developers.

Recent crackdowns on crypto mixing services and privacy tools have raised concerns among crypto advocates about the potential for a future ban on self-custody.

Oklahoma’s new law proactively addresses these concerns by enshrining the right to self-custody as a fundamental right.

The bill’s sponsor, Republican state Rep. Brian Hill, emphasized the importance of the legislation in protecting individuals’ rights to their digital assets.

The Satoshi Action Fund, which helped introduce similar legislation in 15 other states, believes that more states will follow Oklahoma’s lead in passing crypto-friendly laws.

As the new law goes into effect on November 1, 2024, Oklahoma is positioning itself as a welcoming destination for crypto companies and investors.

The state has already attracted significant investments in the crypto mining industry, with companies like Polaris Technologies announcing plans to build large-scale mining facilities in the state.