Revolutionary Bill Introduced in Oklahoma to Establish Bitcoin Strategic Reserve
Representative Cody Maynard has brought forth House Bill 1203, proposing the creation of a Bitcoin (BTC) Strategic Reserve in Oklahoma with an allocation of up to $850 million. This initiative marks Oklahoma as the sixth state in the US to consider such a groundbreaking move.
Key Points of the Legislation:
- The bill empowers the Oklahoma State Treasurer to invest funds from the State General Fund, Revenue Stabilization Fund, and Constitutional Reserve Fund into Bitcoin, digital assets with market caps exceeding $500 billion, and stablecoins.
- Investments in these assets are limited to 10% of the total value of the respective funds.
- As of August 7, 2024, Oklahoma had amassed $8.5 billion in revenue, as per the fiscal year report.
- Currently, the market cap criterion restricts investment to only Bitcoin, with Ethereum (ETH) being the closest contender.
Custody and Compliance Requirements:
- Digital assets procured under the act must be securely stored using advanced custody solutions, including geographically diversified data centers and stringent multi-party governance protocols.
- The legislation also permits staking, a blockchain mechanism for validating transactions, with the stipulation that the state retains ownership of the staked assets.
- Investment in stablecoins is allowed if they have received regulatory approval from entities in the US, the UK, Japan, or the EU.
- Taxes and fees paid in Bitcoin must be deposited into the State General Fund, which will then reimburse designated accounts in US dollars.
- State retirement funds can directly invest in digital assets through secure custody solutions with qualified custodians or regulated exchange-traded products (ETP).
Increasing Trend Across the US:
- A total of eight US states are advocating for a Bitcoin Strategic Reserve, with six formally introducing legislation by January 15.
- Various representatives from states like Pennsylvania, Texas, Ohio, New Hampshire, and North Dakota have proposed similar bills to establish Bitcoin reserves.
- The efforts are being supported by Dennis Porter, co-founder and CEO of the Satoshi Action Fund, with an aim to have 12 states initiating BTC reserve bills in the first quarter.
- Alabama and Florida are also contemplating adding Bitcoin to their treasuries as a hedge against inflation, showcasing a growing interest in digital asset adoption.