The Rise of Bitcoin Legislation in Three US States
Three US states—Arizona, Kentucky, and Oklahoma—have recently introduced new legislative efforts to support and promote Bitcoin within their jurisdictions. These bills aim to protect crypto rights, encourage Bitcoin investment, and establish state-managed reserves for digital assets.
Arizona’s Bitcoin Reserves Bills
Arizona has taken significant steps towards embracing Bitcoin with the introduction of two key bills that have cleared the House Rules Committee on March 24. These bills, SB 1373 and SB 1025, are now set to be voted on by the full House.
- SB 1373 proposes the creation of a Strategic Digital Assets Reserve, which would include crypto seized during criminal investigations.
- The state treasurer would manage the fund and could invest up to 10% of its value annually, with provisions for controlled risk lending.
- On the other hand, SB 1025 focuses on allowing the Arizona Treasury and state retirement system to invest up to 10% of available funds into Bitcoin.
While the chances of both bills passing are high due to Republican majority in the legislative chamber, final approval rests with Democratic Governor Katie Hobbs, known for vetoing Republican legislation.
Kentucky’s Protection for Bitcoin Users
Kentucky has enacted House Bill 701 into law, providing strong legal protections for residents using or holding digital assets. Governor Andy Beshear approved the bill on March 24, ensuring rights to self-custody Bitcoin, run nodes, and use crypto without fear of discrimination.
- The legislation also prevents local governments from imposing unfair restrictions on mining operations.
- Mining and staking activities are exempt from securities regulations and money transmitter licensing requirements.
Oklahoma’s Bitcoin Investment Bill
Oklahoma lawmakers have approved House Bill 1203, allowing the state treasurer to invest public funds in Bitcoin and stablecoins with a market capitalization of at least $500 billion. This move aligns with a growing trend of US states integrating Bitcoin into public finance strategies.
- With strong Republican leadership in the Senate and governor’s office, the bill is poised to become law.
- If passed, Oklahoma would join the ranks of states embracing digital assets for public investment.
