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Oklahoma enacts law protecting cryptocurrency rights
Oklahoma Governor Kevin Stitt signed HB 3594 into law, establishing comprehensive protections for cryptocurrency-related businesses in the state. The new legislation, passed May 13 and set to take effect Nov. 1, prohibits the state government from restricting or hindering the use of cryptocurrencies for purchases and self-custody.
The law ensures that neither state nor local governments can impose additional taxes specifically targeted at cryptocurrencies. Cryptocurrencies will instead be subject to the same taxes as legal tender. This measure aims to promote a more favorable environment for cryptocurrency transactions and investments in Oklahoma.
HB 3594 also provides significant protections for cryptocurrency mining activities. Legalizes both domestic and industrial crypto mining operations, allowing companies to operate in areas designated for industrial use. While local governments retain the authority to change mining zone designations, they must provide adequate notice and allow for appeals. The law also prevents local authorities from imposing specific noise restrictions on crypto mining operations, although general noise and data center regulations will continue to apply.
The Oklahoma Corporation Commission, the state’s public utility commission, is prohibited from creating discriminatory fees for cryptocurrency mining companies. Additionally, the law exempts parties involved in mining, staking and operating blockchain nodes from obtaining a money transfer license, simplifying the regulatory landscape for these activities.
The Oklahoma Bitcoin Association lauded the legislation, noting that it makes Oklahoma the first state to codify the rights of its citizens to independently operate nodes, mine and store their own Bitcoin. Dennis Porter, CEO of the Satoshi Act Fund, praised the bill for addressing what he described as an “onslaught of attacks” on self-custody rights.
This legislative move by Oklahoma comes as other states, such as Arkansas, have imposed restrictions on cryptocurrency mining, often citing noise pollution as a concern. At the national level, efforts like Senator Elizabeth Warren’s Digital Asset Anti-Money Laundering Act aim to impose similar restrictions on activities related to unhosted wallets, digital asset miners and validators.
Oklahoma’s HB 3594 sets a significant precedent in protecting cryptocurrency-related businesses, potentially serving as a model for other states seeking to create a more favorable regulatory environment for the thriving cryptocurrency industry.