Oklahoma has become the first US state to legally protect Bitcoin’s right to self-custody after passing a new law. The newly signed legislation ensures that residents can own, control and use digital assets without state interference.
Republican Governor Kevin Stitt signed the Bitcoin Rights bill – HB3594 – into law earlier this week. The legislation prohibits the state from restricting the use of crypto for legal transactions and guarantees the right to self-custody of Bitcoin using hardware wallets.
The bill also covers digital asset mining and allows citizens to conduct mining activities at home, provided they comply with local noise ordinances. This aspect addresses the energy-intensive nature of crypto mining, which often involves significant hardware and can generate a lot of noise.
Dennis Porter, CEO and co-founder of the nonprofit Satoshi Action Fund, which helped draft the bill, emphasized the importance of the legislation, stating:
“The right to self-determination is now enshrined in law. This can now become a blueprint for the nation.”
Satoshi Action Fund is advocating for similar laws in fifteen other states.
The newly introduced law guarantees the right to self-custody, as well as the right to issue Bitcoin and other digital assets, mine Bitcoin and run a node. Furthermore, it prohibits additional taxes on Bitcoin transactions and eliminates the need for Bitcoin miners and digital asset validators to obtain a money transmitter license.
According to Porter:
“Given the recent onslaught of self-custody attacks, there could not be a more important time to send the message that the right to access and self-custody of Bitcoin and digital assets must be protected.”
He emphasized that the ability to manage personal wealth is fundamental to American values and crucial to securing a prosperous future.
The Oklahoma Bitcoin Association played a crucial role in educating lawmakers about the benefits of Bitcoin, and contributed to the bill’s successful passage. The association’s efforts are part of a broader trend of increasing political interest in digital assets, often divided along partisan lines.
At the federal level, Democrats typically emphasize the potential risks associated with crypto, while Republicans argue against regulations that they say hinder innovation. Porter suggested that as technology receives more attention and critical scrutiny, perspectives on crypto are evolving beyond traditional partisan divides.
The passage of HB3594 marks an important milestone for cryptocurrency advocates. Oklahoma has set an important precedent that has the potential to be mirrored not only by U.S. states but also by other countries.