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Oklahoma signs bill protecting crypto spending, mining and self-custody
Oklahoma has signed into law a bill that protects rights related to encryption.
The Oklahoma State Legislature website indicates that Governor Kevin Stitt approved HB 3594 in May 13.
The project comes into force on November 1st.
Under the new law, the Oklahoma state government cannot prohibit, restrict, or harm the use of cryptocurrencies in purchases or self-custody of cryptocurrencies.
Additionally, state and local governments cannot impose additional taxes or other charges specifically targeted at cryptocurrencies. Taxes apply to legal tender.
Mining and other protections
HB 3594 also protects home crypto mining and mining companies by stating that it is legal to participate in any type of mining in Oklahoma.
The bill specifically ensures that companies can operate crypto mining companies in areas zoned for industrial use. Political subdivisions may change a mining company’s zoning with proper notice and comment, and mining companies may appeal the zoning change.
The bill also prevents political subdivisions from imposing specific noise restrictions and other rules on crypto mining companies, although general noise laws and data center requirements would apply.
The state public utility commission, The Oklahoma Corporation Commission, cannot create discriminatory rate schedules for mining companies.
Oklahoma cannot require parties involved in mining, staking and variances to obtain a money transmission license. Likewise, it cannot require those operating a blockchain node to obtain a money transmission license.
Industry support
The Oklahoma Bitcoin Association wrote:
“The law makes Oklahoma the FIRST state to codify its citizens’ rights to operate a node, mine, and self-custody their Bitcoins.”
Satoshi Act Fund CEO and co-founder Dennis Porter commented on the bill, stating that it addresses an “onset of attacks” on self-custody.
Certain U.S. states and regions, most recently Arkansas, restrictions imposed about crypto mining, sometimes citing noise pollution as justification.
Meanwhile, attempted legislation at the US level, including that of Senator Elizabeth Warren Digital Asset Anti-Money Laundering Law, aim to impose restrictions in similar areas. Warren’s bill aims to restrict unhosted wallet providers, digital asset miners, validators and other nodes.