OK
Oklahoma House Bill HB1203

Oklahoma 2025 Regular Session

Oklahoma House Bill HB1203 Compare Versions

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3-ENGR. H. B. NO. 1203 Page 1 1
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28-ENGROSSED HOUSE
29-BILL NO. 1203 By: Maynard, Hays, Pae, Kelley,
30-Chapman, Adams, Woolley and
31-Hill of the House
29+HOUSE OF REPRESENTATIVES - FLOOR VERSION
30+
31+STATE OF OKLAHOMA
32+
33+1st Session of the 60th Legislature (2025)
34+
35+HOUSE BILL 1203 By: Maynard and Hays of the
36+House
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3338 and
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3540 Frix of the Senate
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45+AS INTRODUCED
4346
4447 An Act relating to public finance; enactin g the
4548 Strategic Bitcoin Reserve Act; providing definitions;
4649 permitting certain investments by the State
47-Treasurer; limiting investments; directing manner in
48-which digital assets shall be held; permitting
49-certain third-party solution; permitting investment
50-of state retirement funds in certain digital assets;
50+Treasurer; limiting investments; directing certain
51+taxes and fees be paid to the State General Fund;
52+permitting investment of state retirement funds;
5153 providing for codification; and providing an
5254 effective date.
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6059 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
6160 SECTION 1. NEW LAW A new section of law to be codified
6261 in the Oklahoma Statutes as Section 89.12 of Title 62 , unless there
6362 is created a duplication in numbering, reads as follows:
6463 This act shall be known and may be cited as the "Strategic
6564 Bitcoin Reserve Act".
65+SECTION 2. NEW LAW A new section of law to be codified
66+in the Oklahoma Statutes as Section 89.12a of Title 62, unless there
67+is created a duplication in numbering, reads as follows:
6668
67-ENGR. H. B. NO. 1203 Page 2 1
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92-SECTION 2. NEW LAW A new section of law to be codified
93-in the Oklahoma Statutes as Section 89.1 2a of Title 62, unless there
94-is created a duplication in numbering, reads as follows:
9595 As used in this act, the following terms shall mean:
9696 1. "Bitcoin" refers to the decentralized digital currency
9797 launched in 2009, based on Satoshi Nakamot o's whitepaper titled
9898 "Bitcoin: A Peer-to-Peer Electronic Cash System ". Bitcoin also
9999 refers to the digital asset which is the basis of the bitcoin
100100 exchange-traded product and is regulated by the United States
101101 Securities and Exchange Commission;
102102 2. "Digital asset" means virtual currency, cryptocurrencies,
103103 natively electronic assets, including stablecoins and non -fungible
104104 tokens (NFTs), and other digital -only assets that confer economic,
105105 proprietary, or access rights or powers;
106106 3. "Exchange-traded product (ETP)" refers to any financial
107107 instrument that is approved by the United States Securities and
108108 Exchange Commission, or the Commodities Future Trading Commission,
109-that is traded on an American -regulated exchange and derives its
109+that is traded on an American regulated exchange and derives its
110110 value from an underlying pool of assets, such as stocks, bonds,
111111 commodities, or indexes;
112-4. "Qualified custodian" means any federal or state -chartered
112+4. "Private key" means a unique element of cryptographic data,
113+used for signing transactions on a blockchain, and is known to t he
114+owner of the private key;
115+5. "Qualified custodian" means any federal or state-chartered
113116 bank, trust company, or special purpose depository institution or a
114117 company regulated by the state which custodies digital assets for an
115118 approved exchange-traded product;
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117-ENGR. H. B. NO. 1203 Page 3 1
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142-5. "Stablecoin" means a digital asset that is issued by a
143-corporation backed by dollars or high -quality liquid assets and is
144-redeemable, on demand, by the holder, at par for a fixed monetary
145-value in equivalent United States dollars; and
146-6. "Staking" means the act of committing digital assets for a
147-period of time to validate and secure a specific blockchain network.
148-SECTION 3. NEW LAW A new section of law to be codified
149-in the Oklahoma Statutes as Section 89.1 2b of Title 62, unless there
150-is created a duplication in numbering, reads as follows:
151-A. The State Treasurer may invest public funds in bitcoin or
152-any digital asset with a market cap of over Five Hundred Billion
153-Dollars ($500,000,000,000.00) averaged over the previous calendar
154-year, and stablecoins f rom the following funds:
155-1. The State General Fund;
156-2. The Revenue Stabilization Fund; and
157-3. The Constitutional Reserve Fund.
158-B. The amount of public funds that the State Treasurer may
159-invest in bitcoin or any digital assets with a market cap of over
160-Five Hundred Billion Dollars ($500,000,000,000.00) averaged over the
161-previous calendar year, and stablecoins may not, at the time the
162-investment is made, exceed five percent (5%) of the total amount of
163-public funds in that account.
164-C. Any digital assets a cquired by any of the funds listed in
165-subsection A of this section shall be held:
146+6. "Secure custody solution" means a technological product or
147+blended product and service which has all of the following
148+characteristics:
149+a. the cryptographic private keys that secure digital
150+assets are exclusively known by and accessible by the
151+government entity,
152+b. the cryptographic private keys that secure digi tal
153+assets are exclusively contained within an encrypted
154+environment and accessible only via end -to-end
155+encrypted channels,
156+c. the cryptographic private keys that secure digital
157+assets are never contained by, accessible by, or
158+controllable via a smartphone ,
159+d. any hardware that contains the cryptographic private
160+keys that secure digital assets is maintained in at
161+least two geographically diversified specially
162+designated secure data centers,
163+e. the secure custody solution enforces a multi -party
164+governance structure for authorizing transactions,
165+enforces user access controls, and logs all user -
166+initiated actions,
167+f. the provider of the secure custody solution has
168+implemented a disaster recovery protocol that ensures
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192-1. On behalf of the state by a qualified custodian; or
193-2. In the form of an exchange-traded product issued by a
194-registered investment company.
195-D. The State Treasurer may only hold stablecoins under this
196-section that have received the appropriate regulatory approval from
197-at least one of the competent authorities of the following:
198-1. The United States of America; or
199-2. Any state of the United States of America .
200-E. If a digital asset can be staked with the Office of the
201-State Treasurer retaining legal ownership of the digital asset, the
202-State Treasurer may engage in staking using a third -party solution.
203-SECTION 4. NEW LAW A new section of law to be codified
204-in the Oklahoma Statutes as Section 89.12 c of Title 62, unless there
196+customer access to assets in the event the pr ovider
197+becomes unavailable, and
198+g. the secure custody solution undergoes regular code
199+audits and penetration testing from audit firms, and
200+any identified vulnerabilities should be promptly
201+remedied;
202+7. "Stablecoin" means a digital asset that is issued by a
203+corporation backed by dollars or high -quality liquid assets and is
204+redeemable, on demand, by the holder, at par for a fixed monetary
205+value in equivalent United States dollars;
206+8. "Staking" means the act of committing digital assets for a
207+period of time to validate and secure a specific blockchain network;
208+and
209+9. "Staking as a service" means the provision of technical
210+staking services, including the operation of nodes and the
211+associated infrastructure necessary to facilitate participation in
212+blockchain networks' consensus mechanisms.
213+SECTION 3. NEW LAW A new section of law to be codified
214+in the Oklahoma Statutes as Section 89.12b of Title 62, unless there
205215 is created a duplication in numbering, reads as follows:
206-Any state retirement fund may invest digital assets in exchange-
207-traded products that have been duly registered by either th e United
208-States Securities and Exchange Commission or the Commodities Future
209-Trading Commission. The amount of funds that may be invested in
210-bitcoin or any digital assets with a market cap of over Five Hundred
211-Billion Dollars ($500,000,000,000.00) averaged over the previous
212-calendar year, and stablecoins may not, at the time the investment
213-is made, exceed five percent (5%) of the total amount of funds in
214-that account.
215-SECTION 5. This act shall become effective November 1, 2025.
216+A. The State Treasurer may invest public funds in bitcoin or
217+any digital asset with a market cap of over Five Hundred Billion
218+Dollars ($500,000,000,000.00) averaged over the previous calendar
219+year, and stablecoins from the following funds:
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242-Passed the House of Representatives the 24th day of March, 2025.
247+1. The State General Fund ;
248+2. The Revenue Stabilization Fund ; and
249+3. The Constitutional Reserve Fund.
250+B. The amount of public funds that the State Treasurer may
251+invest in bitcoin or any digital assets with a market cap of over
252+Five Hundred Billion Dollars (500,000,000,000.00) averaged o ver the
253+previous calendar year, and stablecoins may not, at the time the
254+investment if made, exceed ten percent (10%) of the total amount of
255+public funds in that account.
256+C. Any digital assets acquired by any of the funds listed in
257+subsection A of this section shall be held:
258+1. Directly by the State Treasurer through the use of a secure
259+custody solution;
260+2. On behalf of the state by a qualified custodian; or
261+3. In the form of an exchange-traded product issued by a
262+registered investment company.
263+D. The State Treasurer may only hold stablecoins under this
264+section that have received the appropriate regulatory approva l from
265+at least one of the competent authorities of the following:
266+1. The United States of America ;
267+2. Any state of the United States of Ame rica;
268+3. The United Kingdom;
269+4. The Nation of Japan; or
270+5. The European Union.
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298+E. If a digital asset can be staked with the Office of the
299+State Treasurer retaining legal ownership of the digital asset, the
300+State Treasurer may engage in staking using a third-party solution.
301+SECTION 4. NEW LAW A new section of law to be codified
302+in the Oklahoma Statutes as Section 89.12c of Title 62, unless there
303+is created a duplication in numbering, reads as follows:
304+All taxes or fees paid to the state in bitcoin shall be
305+transferred to the State General Fund. The State General Fund shall
306+reimburse whatever fund the qualifying digital asset was designated
307+to with United States currency.
308+SECTION 5. NEW LAW A new section of law to be codified
309+in the Oklahoma Statutes as Section 89.12d of Title 62, unless there
310+is created a duplication in numbering, reads as follows:
311+Any state retirement fund may hold digital assets directly
312+through the use of a secure custody solution, store digital assets
313+with a qualified custodian, or invest digital assets in exchange-
314+traded products that have been duly registered by either the United
315+States Securities and Exchange Commission or the Commodit ies Future
316+Trading Commission.
317+SECTION 6. This act shall become effective November 1, 2025.
245318
246-
247- Presiding Officer of the House
248- of Representatives
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252-Passed the Senate the _____ day of __________, 2025.
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257- Presiding Officer of the Senate
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319+COMMITTEE REPORT BY: COMMITTEE ON GOVERNMENT OVERSIGHT, dated
320+02/25/2025 - DO PASS, As Coauthored.