Oklahoma lawmaker introduces legislation to establish strategic Bitcoin reserve

Representative Cody Maynard introduced House Bill 1203 to implement a Bitcoin (BTC) Strategic Reserve of up to $850 million in Oklahoma. The state is the sixth to receive such a proposal in the US.

The legislation would allow the Oklahoma State Treasurer to allocate funds from the State General Fund, Revenue Stabilization Fund, and Constitutional Reserve Fund into Bitcoin, digital assets with market capitalizations exceeding $500 billion, and stablecoins.

Notably, investments in these assets would be capped at 10% of the total value of the respective funds. According to its fiscal year report, Oklahoma had collected $8.5 billion as of Aug. 7, 2024.

The market cap limitation currently allows investment only in Bitcoin. Ethereum (ETH) is the closest to meeting the requirement besides BTC, but its price should reach $4,150 at the current circulating supply of 120,5 million ETH.

If passed, the legislation will take effect on Nov. 1, 2025.

Custody and other requirements

Digital assets acquired under the act must be securely stored using advanced custody solutions, including geographically diversified data centers and strict multi-party governance protocols.

The bill also allows for staking, a blockchain mechanism to validate transactions provided the state retains ownership of the staked assets.

Regarding stablecoins, the investment in these tokens is permitted if they have received regulatory approval from entities in the US, the UK, Japan, or the EU.

Additionally, the bill stipulates that taxes and fees paid in Bitcoin must be deposited into the State General Fund, which would then reimburse designated accounts in US dollars.

The act also allows state retirement funds to invest in digital assets directly through secure custody solutions with qualified custodians or regulated exchange-traded products (ETP).