Oklahoma Passes House Bill 1203, Allowing the State to Establish a Strategic Bitcoin Reserve

On Monday, the Oklahoma House of Representatives passed House Bill 1203, allowing the state to establish a strategic Bitcoin reserve by investing in cryptocurrency as part of its financial reserves and retirement funds.

The Oklahoma House of Representatives has passed a bill that would allow the state to invest in Bitcoin as part of its financial reserves and retirement funds.

The bill, HB 1203, was passed by a vote of 73-15 on Monday. It now moves to the Senate for consideration.

The bill would create a new section of state law to allow investments in digital assets with a market capitalization of over $500 million—currently, only Bitcoin meets this criterion. It would also create a 5% cap on the total amount of state funds that could be invested in cryptocurrencies.

"The intent of the bill is to make sure that we do not exceed a 5% cap on digital asset investments, and to make sure that we are compliant with federal law," said Maynard, a Republican from Durant.

The bill was supported by most Republicans, but it drew opposition from House Democrats, who argued that it would put state pensions at risk.

"I am still concerned that there is no rebalancing provision in the bill," said Fugate, a Democrat from Indianola. "If the market goes down, we will continue to invest in Bitcoin, even though it may be losing value."

Provenzano, a Democrat from Wayne, asked if state retirees would be able to opt out of investing in crypto.

"Pensioners will not be able to avoid any type of investment that the state chooses to make," Maynard replied.

If adopted, Oklahoma could be among the first states to include Bitcoin and other cryptocurrencies in its treasury.output: On Monday, the Oklahoma House of Representatives passed House Bill 1203 with little or no opposition from the GOP legislators while it drew opposition from the House Democrats.

The bill that has been passed by most Republican legislators includes an amendment that creates a 5% cap on the state’s financial institutions’ digital asset investments. It also permits investments in digital assets with a market capitalization of over $500 million, which, at the moment, is possible only with Bitcoin.

The bill's goal is to ensure that these investments do not exceed this limit and that the state is compliant with federal law, according to Rep. Cody Maynard, a Republican from Durant who authored the bill.

"The intent of the bill is to make sure that we do not exceed a 5% cap on digital asset investments, and to make sure that we are compliant with federal law," said Maynard.

The bill now moves to the Senate for consideration. If adopted, Oklahoma could be among the first states to include Bitcoin and other cryptocurrencies in its treasury.

Initially, the proposal allowed up to 10% of the state’s funds to be invested in cryptocurrencies, but it was amended to a 5% cap.

"We’re trying to stay in compliance with federal law, which says that we can't invest more than 10% of our financial institutions' net worth in a single class of assets," Maynard explained.

The bill encountered opposition from the House Democrats. Some expressed concern over the lack of a rebalancing provision in the bill.

"I am still concerned that there is no rebalancing provision in the bill," said Rep. Andy Fugate, a Democrat from Indianola. "If the market goes down, we will continue to invest in Bitcoin, even though it may be losing value."

The bill also drew questions about whether state retirees would be able to exclude themselves from investing in crypto.

"Pensioners will not be able to avoid any type of investment that the state chooses to make," Maynard replied.

The bill, which was approved by a vote of 73-15, now heads to the Senate, where it will be subject to further debate and voting.