Oklahoma Enacts Watershed Bitcoin Rights Law Protecting Self-Custody Wallets

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Julia Smith

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Julia Smith

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Julia is an experienced editor with a passion for covering a wide variety of beats. She loves all things politics and regularly covers regulatory updates on emerging technology here for Crypto News.

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May 16, 2024

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Oklahoma Governor Kevin Stitt delivered a major win to digital asset supporters Monday with the enactment of a new Bitcoin rights bill (a.k.a HB3594) focused on preserving fundamental crypto rights amidst the U.S. government’s crackdown on self-custody wallets.

Championed in the House by Congressman Samuel Brian Hill and Senator Bill Coleman, the new law will see the state government prohibited from banning or restricting “the use of digital assets for purchasing legal goods/services, or the self-custody of digital assets using a self-hosted wallet or a hardware wallet.”

HB3594 A.K.A Bitcoin Rights Bill Passes In Oklahoma

Equally important, HB3594 will ban additional taxes on Bitcoin when used as a form of payment and protect Oklahomans’ right to mine while “clarifying that certain persons are not required to obtain a money transmitter license.”

Based on policy drafts created by non-profit Satoshi Action Fund, the bill will only serve to further Oklahoma’s pro-crypto stance towards digital asset regulation.

🚨HUGELY MASSIVE BRREAKING🚨: A bill protecting your ‘fundamental #Bitcoin rights’ has been SIGNED INTO LAW in the state of Oklahoma.

Oklahoma will now defend your:
✅ Right to self-custody
✅ Right to spend #Bitcoin and digital assets
✅ Right to mine #Bitcoin
✅ Right to run… pic.twitter.com/KdPsmLBzDo

— Dennis Porter (@Dennis_Porter_) May 14, 2024

“The idea that ‘We the People’ cannot hold our own assets is antithetical to American values. Without the ability to manage our wealth, we lose control of our destiny and the chance to create better futures for our families,” said Satoshi Action Fund CEO Dennis Porter.  “This law ensures that everyone can secure not only their #Bitcoin but all their assets.”

The U.S. Cracks Down On Self-Custody Wallets

News of the state-wide legislation comes amid the federal government’s crackdown on cryptocurrencies, particularly regarding self-custody wallets.

Last month, the Department of Justice arrested Samourai Wallet founders Keonne Rodriguez and William Lonergan Hill on conspiracy to commit money laundering and supposedly operating an unlicensed money-transmitting business.

Similarly, Tornado Cash developers Roman Storm and Roman Semenov were charged with conspiracy to commit money laundering and sanctions violations.

U.S. authorities are especially concerned about the financing of illicit criminal and terrorist financing via the crypto mixers. Tornado Cash was accused of facilitating “more than $1 billion in money laundering transactions” for North Korean hackers Lazarus Group.

Meanwhile, the founders of Samourai Wallet are accused of executing “$2 billion in unlawful transactions and facilitating more than $100 million in money laundering transactions from illegal dark web markets.”

Pro-crypto proponents have been outraged over the federal charges, alleging that self-custody is necessary for those seeking to protect themselves from bad actors in the digital asset sector, however.

“Given the recent onslaught of attacks on self-custody, there could not be a more important time to send a message that the right to access and self-custody #Bitcoin and digital assets MUST be protected,” Porter continued.

HB3594 will take effect on November 1 of this year. It is unclear whether its passage in Oklahoma will prompt other state legislatures to follow suit.