Oklahoma has taken a significant step in the world of cryptocurrency by signing into law a bill that protects crypto-related rights. The bill, approved by Governor Kevin Stitt, is set to come into effect on November 1. Under the new law, the state government is barred from prohibiting, restricting, or impairing the use of crypto in purchases or self-custody. Additionally, state and local governments are prohibited from imposing extra taxes or charges specifically aimed at crypto. However, taxes on legal tender still apply.
Support for Mining Businesses
HB 3594 also extends its protection to home crypto mining and mining businesses by legalizing their participation in Oklahoma. The bill ensures that crypto mining companies can operate in areas zoned for industrial use without facing unnecessary restrictions. Although political subdivisions retain the right to change the zoning of a mining business with proper notice and comments, mining firms have the ability to appeal any changes. Furthermore, specific noise restrictions and other rules cannot be imposed on crypto mining businesses, except for general noise ordinances and data center requirements. The Oklahoma Corporation Commission is prevented from creating discriminatory rate schedules for mining companies.
The Oklahoma Bitcoin Association praised the law, highlighting Oklahoma as the first state to formally recognize and protect the rights of its citizens to run a node, mine, and self-custody their Bitcoin. The significance of this legislation cannot be understated, especially in a landscape where other states and regions are imposing restrictions on crypto mining citing reasons like noise pollution.
In contrast to Oklahoma’s progressive stance, there have been attempts at the national level to impose restrictions on various aspects of cryptocurrency. Senator Elizabeth Warren’s Digital Asset Anti-Money Laundering Act is an example of such legislation that seeks to regulate unhosted wallet providers, digital asset miners, validators, and other nodes. However, the new Oklahoma law sets a precedent by protecting the rights of individuals and businesses engaged in the crypto space, paving the way for innovation and growth in the industry.
Oklahoma’s decision to pass this bill demonstrates a commitment to fostering a welcoming environment for cryptocurrencies and related activities. As the landscape of digital assets continues to evolve, the importance of clear and supportive legislation cannot be overstated. By recognizing and protecting the rights of its citizens in the crypto space, Oklahoma has positioned itself as a leader in the industry and a model for other states to follow.
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