Oklahoma Passes Bill Protecting Residents’ Right to Self-Custody Digital Assets
Oklahoma recently approved a bill on May 13 that ensures its residents have the freedom to self-custody their digital assets. The legislation, referred to as OKHB3594, was signed into law by Governor Kevin Stitt and sponsored by four Republicans: State Senators Bill Coleman and Dana Prieto, and State Representatives Brian Hill and Cody Maynard.
The bill effectively prohibits any restrictions or bans on the use of self-custody or hardware wallets for storing digital assets. This means that individuals in Oklahoma can have complete control and protection over their own digital assets without interference from third parties.
In addition to self-custody, the legislation allows Oklahomans to engage in both home-based and industrial crypto mining, as long as they adhere to local noise ordinances.
The self-custody bill is set to take effect on November 1, 2024. One notable aspect of the bill is the exemption of crypto miners from needing a money transmitter license. This means that individuals involved in home digital asset mining or running digital asset mining businesses, as well as those participating in staking or staking as a service, are not required to obtain a license typically associated with financial transactions.
Furthermore, the bill prohibits discriminatory electricity rates for digital asset mining businesses, ensuring fair treatment in terms of energy costs.
The legislation also addresses the use of digital assets as a payment method. Oklahoma residents are now able to utilize cryptocurrencies to pay for goods and services without being subjected to additional taxes, withholdings, assessments, or charges solely based on the use of digital assets in transactions.
Dennis Porter, the CEO of Satoshi Act Fund, emphasized the significance of the bill in protecting fundamental Bitcoin rights. In a post on X, he wrote, “Without the ability to manage our wealth, we lose control of our destiny and the chance to create better futures for our families. This law ensures that everyone can secure not only their [bitcoin] but all their assets.”
While Oklahoma takes steps to safeguard residents’ rights to self-custody digital assets, other countries are exploring the possibility of seizing crypto assets for tax evasion purposes. South Korean tax officials in the city of Pohang recently announced plans to seize crypto from 5,208 residents who failed to pay local taxes. Similarly, the Spanish Ministry of Finance is working on legislative reforms to enable the seizure of digital assets to settle tax debts.
The bill passed in Oklahoma is a positive development for individuals seeking to maintain control over their digital assets, while other countries grapple with the implications of crypto assets in tax collection efforts.
