Oklahoma introduces new legislation for Blockchain and Digital Assets

Oklahoma Governor Kevin Stitt has signed a landmark bill into law that provides a legal framework for blockchain technology and digital assets.

This legislation, which will come into effect on November 1, 2024, protects users of digital assets from restrictions and discriminatory practices.

Basis for protecting individuals’ rights to digital assets

The new law prohibits the Oklahoma government from imposing restrictions on the use of digital assets for legal purchases or self-custody. Furthermore, it establishes that digital assets, when used as a means of payment, should not be subject to additional taxes or fees compared to other payment methods.

The bill, originally introduced in January by state Rep. Brian Hill, also legitimizes digital asset mining in residential areas, provided local noise ordinances are met. Companies that mine digital assets will be allowed to operate in industrial zones without additional noise restrictions, other than those already in place.

“House Bill 3594 lays a foundation for protecting individuals’ rights to their digital assets,” Hill said on May 9, following the bill’s passage.

Miners classified as data centers

The legislation classifies miners as data centers and stipulates that state agencies cannot impose additional requirements on companies mining digital assets that do not also apply to data centers.

A key aspect of the bill is to protect individuals and companies engaged in crypto mining or node operations from liabilities related solely to validating transactions. The legislation explicitly states that operating a node on a blockchain protocol does not require a money transmitter license under Oklahoma Statutes.

In addition, the new legislation does not require a money transfer license for mining digital assets, operating nodes or participating in blockchain staking. It will also ban discriminatory electricity rates targeting crypto mining companies, to ensure miners have access to energy at comparable rates to other industries.

With this legislation, Oklahoma positions itself as one of the first US states to introduce specific crypto legislation, while the US Congress is still discussing several bills related to cryptocurrencies and blockchain technology, including a regulatory framework for stablecoins.