Oklahoma Passes Groundbreaking Legislation to Safeguard Self-Custody Wallets for Bitcoin
In a significant victory for supporters of digital assets, Oklahoma Governor Kevin Stitt signed into law a new bill, known as HB3594, aimed at protecting the fundamental rights of Bitcoin users in the face of the US government’s crackdown on self-custody wallets.
Championed by Congressman Samuel Brian Hill and Senator Bill Coleman, the legislation prevents the state government from banning or limiting the use of digital assets for purchasing legal goods and services, as well as the self-custody of digital assets using self-hosted or hardware wallets.
HB3594, also referred to as the Bitcoin Rights Bill, goes even further by prohibiting additional taxes on Bitcoin when used as a form of payment and safeguarding the right of Oklahomans to mine cryptocurrencies. It also clarifies that certain individuals are not required to obtain a money transmitter license.
The bill, which draws on policy drafts from the non-profit organization Satoshi Action Fund, reinforces Oklahoma’s pro-crypto stance on digital asset regulation.
Dennis Porter, CEO of Satoshi Action Fund, emphasized the importance of individuals being able to secure their assets, stating, “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. This law ensures that everyone can secure not only their Bitcoin but all their assets.”
This legislation comes at a time when the US government is cracking down on cryptocurrencies, particularly with regards to self-custody wallets. Recent arrests of individuals involved in self-custody wallet services, such as Samourai Wallet and Tornado Cash, on charges of money laundering and operating unlicensed money-transmitting businesses have raised concerns.
Authorities are particularly worried about the use of crypto mixers for illicit activities, including criminal and terrorist financing. Tornado Cash, for example, is accused of facilitating over $1 billion in money laundering transactions for the North Korean hackers known as the Lazarus Group.
While pro-crypto advocates argue that self-custody is essential for protecting oneself from malicious actors in the digital asset sector, federal charges against self-custody wallet founders have sparked outrage.
Dennis Porter stressed the urgency of protecting the right to access and self-custody Bitcoin and digital assets, stating, “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.”
HB3594 will come into effect on November 1 of this year. It remains to be seen whether other states will follow Oklahoma’s lead in enacting similar legislation.