Oklahoma Becomes the First US State to Invest Public Funds in Bitcoin

The Oklahoma House of Representatives passed the Strategic Bitcoin Reserve Act

The Oklahoma House of Representatives has passed the Strategic Bitcoin Reserve Act with a strong 77-15 vote.

The bill, House Bill 1203 (HB1203), would allow the state to invest up to 10% of public funds in Bitcoin or any other digital asset with a market capitalization exceeding $500 billion in the previous year. The move comes as several American states are now considering cryptocurrency in their budget.

HB1203 was presented on 15th January, 2025, by Representative Cody Maynard to adjust Oklahoma’s financial portfolio to permit investments in digital assets.

The bill grants the state treasurer the authority to oversee investments in digital assets across major state funds, including the general fund, revenue stabilization fund, and constitutional reserve fund. They will take action to serve as an inflation hedge while establishing financial resilience.

Its passing now positions Oklahoma to align with other states contemplating similar digital currency reserves. In late 2024, Pennsylvania introduced legislation being considered for investing up to 10% of its vast state funds in Bitcoin.

Texas followed suit with a bill introduced by Representative Giovanni Capriglione to create a Bitcoin reserve. Ohio's Derek Merrin proposed a specific Bitcoin fund in the state treasury, while New Hampshire suggested offering investment and staking in digital assets for extra returns.

Lawmakers in Wyoming are deliberating on a bill that would permit investing up to 3% of certain state funds in Bitcoin through safe custody agreements.

This trend indicates a growing consensus on Bitcoin at the state-level budgeting. Some states are exploring direct investment, while others are examining the possibility of staking and lending digital assets as a revenue source.

Oklahoma's move follows broader national discussion on the use of digital assets in government reserves. President-elect Donald Trump and Senator Cynthia Lummis have both put forward major Bitcoin policy proposals.

Trump has called for keeping 198,000 bitcoins seized by the government in government reserves, while Lummis suggests that the Treasury buy one million bitcoins, potentially tying it to a revaluation of the gold reserve.

Those in favor of these proposals argue that Bitcoin's limited supply makes it an efficient hedge against inflation and economic uncertainty. They also highlight the benefit of decentralization for diversifying financial holdings.

Those against these proposals warn against the volatility and speculation of Bitcoin, saying state and federal investments in virtual currencies could subject public monies to wild price fluctuations.