Oklahoma is protecting its residents' right to self-custody of cryptocurrencies.
Through the bill 3594, the state of Oklahoma is positioning itself as a new leader in the regulation of Bitcoin and cryptoassets, which could influence how other states and jurisdictions approach the regulation of these emerging technologies.
Oklahoma has taken a significant step in regulating cryptocurrencies with the enactment of House Bill 3594, which not only protects the rights of Bitcoin users but also seeks to foster innovation in the cryptocurrency space.
Guaranteeing the right to self-custody of Bitcoin and other cryptoassets
This legislation is a milestone in the history of digital financial regulation in the United States state, as it establishes a legal framework that protects citizens' right to self-custody of their digital assets and cryptocurrency mining, both at domestic and industrial levels.
The law too prevents state and local governments from banning cryptocurrency mining, thus ensuring that Oklahoma can become a safe haven for this economic activity.
In addition, the state's governor, Kevin Stitt, has highlighted that the law seeks to improve the state's reputation as a friendly destination for companies and investors in the cryptocurrency sector. The new law is inspired by a model regulation promoted by the advocacy group Satoshi Action Fund, the HB3594 law, which was introduced by Representative Brian Hill and elected in the Senate by Senator Bill Coleman.
The new legal framework enacted by the Governor of Oklahoma is a proactive response to the absence of a cohesive federal regulatory framework for cryptocurrencies and preempts any potential future ban on self-custody of cryptoassets. The law guarantees the fundamental right to self-custody of cryptoassets in a self-hosted wallet or hardware wallet, and Protects the ability to use cryptocurrencies to purchase legal goods and services without additional taxes based solely on the use of the digital asset as a payment method.
This legislative development in Oklahoma represents an important step forward in the legitimization and adoption of cryptocurrencies, providing an example of how states can take the lead in creating an enabling regulatory environment that promotes security, clarity, and innovation in the use of digital assets.
Precise definition of the terminology specific to the crypto industry
In addition to providing protection for the rights of self-custody, use, and mining of cryptocurrencies, the new Oklahoma state law also provides a clear definition of terms such as blockchain, blockchain protocol, virtual currencies, cryptocurrencies, stablecoins and non-fungible tokens, which is crucial to establishing a clear legal framework that is favorable to innovation and, at the same time, protects consumers and market integrity.
These definitions are the cornerstone for creating policies that address the custody of cryptocurrencies and digital assets, clarity in their classification, and monitoring transactions to prevent illicit activities.
Furthermore, the distinction between different types of digital assets allows for more specific regulation tailored to the unique characteristics of each, which is essential for the development of a safer and more robust digital ecosystem.
With the implementation of these laws, it is expected that the adoption of blockchain technology will be encouraged and innovation will be driven in the financial sector, offering new investment opportunities and facilitating financial inclusion through emerging technologies.
