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STATE OF OKLAHOMA
1st Session of the 60th Legislature (2025)
HOUSE BILL 1891 By: Lepak
AS INTRODUCED
An Act relating to state government; providing
definitions; permitting the Oklahoma State Treasurer
to invest public funds in certain prec ious metals and
digital assets; limiting amount that may be invested;
prescribing manner in which digital assets shall be
held; clarifying stablecoins must be approved by
certain competent authorities; permitting engaging in
staking by using a third -party solution; permitting
loaning of certain digital assets; prescribing manner
in which precious metals shall be held; authorizing
the investment of any state retirement fund in
certain registered products; authorizing the
Treasurer to create the Digital Asset Property Fund;
providing purpose of fund; directing Treasurer to
establish process through which fund takes control of
certain digital assets; proscribing the fund taking
control of digital assets obtained via civil asset
forfeiture; directing the exchang e of digital assets
for certain digital assets or stablecoins; permitting
fund to stake digital assets through third -party;
directing for certain excess fund to be paid to State
General Revenue Fund; directing the Treasurer to
establish process for return of certain digital
assets; permitting use of assets to provide funding
for State Rainy Day Fund; directing Treasurer to
select a qualified custodian; providing criteria for
selection of qualified custodian; directing the
Treasurer to conduct study; provid ing for
codification; and providing an effective date.
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BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 5001 of Title 62, u nless there
is created a duplication in numbering, reads as follows:
As used in this act:
1. "Exchange-traded product (ETP)" means any financial
instrument that is approved by the Securities and Exchange
Commission, the Commodities Future Trading Commissi on, or the state
Securities Commissioner that is traded on a United States reg ulated
exchange and derives its value from an underlying pool of assets,
such as stocks, bonds, commodities, or indexes;
2. "Precious metal" means the following, whether in coin ,
bullion, or other form:
a. silver,
b. gold, and
c. platinum;
3. "Private key" means a unique element of cryptographic data
used for signing transactions on a blockchain and is known to the
owner of the private element;
4. "Qualified custodian" means any federal or state-chartered
bank, trust company, or special purpose depositor y institution or a
company regulated by the state which custodies digital assets for
approved exchange traded products;
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5. "Secure custody solution" means a technological produc t or
blended product and service which has all of the following
characteristics:
a. the cryptographic private keys that secure digital
assets are exclusively known by and accessible by the
government entity,
b. the cryptographic private keys that secure di gital
assets are exclusively contained within an encrypted
environment and accessible only via end -to-end
encrypted channels,
c. the cryptographic private keys that secure digital
assets are never contained by, accessible by, or
controllable via a smartpho ne,
d. any hardware that contains the cryptographic private
keys that secure digital assets is maintained in at
least two geographically diversified specially
designated secure data centers,
e. the secure custody solution enforces a multiparty
governance structure for authorizing transactions,
enforces user access controls, and logs all user-
initiated actions,
f. the provider of the secure custody solution has
implemented a disaster recovery protocol that ensures
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customer access to assets in the event the p rovider
becomes unavailable, and
g. the secure custody solution undergoes regular code
audits and penetration testing from audit firms, and
any identified vulnerabilities should be promptly
remedied;
6. "Stablecoin" means a digital asset that is issued by a
corporation backed by a governmental currency or high -quality liquid
assets and is redeemable, on demand, by the holder, at par for a
fixed monetary value in equivalent United States dollars; and
7. "Staking" means the act of committing digital assets for a
period of time to validate and secure a specific blockchain network .
SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 5002 of Title 62, unless there
is created a duplication in numberi ng, reads as follows:
A. The Oklahoma State Treasurer may invest a portion of public
funds in precious metals, any digital asset with a market cap of
over Five Hundred Billion Dollars ($500,000,000,000.00) averaged
over the previous calendar year, and sta blecoins from the following
funds:
1. The State General Revenue Fund;
2. The State Rainy Day Fund; and
3. The State Lottery Fund.
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B. The amount of public funds that the Oklahoma State Treasurer
may invest in precious metals, digital assets with a marke t cap of
over Five Hundred Billion Dollars ($500,000,000,000.00) averaged
over the previous calendar year, and stablecoins may not, at the
time the investment is made, exceed ten percent (10%) of the total
amount of public funds in that account.
C. Any digital assets acquired by any of the funds listed in
subsection A of Section 4 of this act shall be held:
1. Directly by the State Treasurer through the use of a secure
custody solution;
2. On behalf of the state by a qualified custodian; or
3. In the form of an exchange-traded product issued by a
registered investment company tha t invests exclusively in digital
assets with a market cap of over Five Hundred Billion Dollars
($500,000,000,000.00) averaged over the previous calendar year.
D. The State Treasurer may only hold stablecoins under this
section that have received the appropriate regulatory approval from
the following competent authorities:
1. The United States of America; or
2. Any state of the United States of America .
E. If a digital asset ca n be staked with the Office of the
State Treasurer retaining legal ownership o f the digital asset, the
State Treasurer may engage in staking using a third -party solution.
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F. If a digital asset can be loaned without increasing the
financial risk of the sta te, the State Treasurer shall be allowed to
loan the digital asset to bring further return to the state through
rules established by the State Treasurer.
G. Any precious metals acquired by any of the funds listed in
subsection A of Section 4 of this act shall be held:
1. As an exchange traded product;
2. In physical form by a qua lified custodian; or
3. Directly by the state in physical form or in conjunction
with another state in a rule to be established by the State
Treasurer.
SECTION 3. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 5003 of Title 62, unless there
is created a duplication in numbering, reads as follows:
Any state retirement fund may invest in exchange traded products
that have been duly registered by either the Securities and Exchange
Commission, the Commod ity Future Trading Commission, or the State
Securities Office.
SECTION 4. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 5004 of Title 62, unless there
is created a duplication in numbering, reads as follows:
A. The Oklahoma State Treasurer is authorized to create the
Digital Asset Property Fund, which shall be a subsection of the
unclaimed property program.
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B. The Digital Asset Property Fund shall exist for the purpose
of holding digital assets tha t are obtained through criminal asset
forfeiture and returning assets to residents of the state who have
lost control of their digital assets through fraudulent or criminal
activities.
C. The Oklahoma State Treasurer shall establish a process by
rule through which the Digital Asset Property Fund takes control of
digital assets from state law enforcement which has been obtained
through criminal asset forfeiture.
D. The Oklahoma State Treasurer shall establish a process by
rule through which the Digital Ass et Property Fund takes control of
digital assets from local law enforcement which has been obtained
through criminal asset forfeiture.
E. The Digital Asset Property Fund shall n ot take control of
any digital assets obtained via civil asset forfeiture.
F. The Digital Asset Property Fund shall to the best of their
abilities endeavor to keep the digital assets in the original form
when the rightful owner lost control of them.
G. If the Digital Asset Property Fund cannot keep the digital
assets in their original form, it shall exchange all digital assets
obtained in this fund for either:
1. Digital assets which have a market value of Five Hundred
Billion Dollars ($500,000,000,0 00.00) or more on average during the
previous twelve-month period; or
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2. Stablecoins which have received regulatory approval from any
of the following:
a. the United States of America, or
b. any state of the United States of America .
H. The Digital Asset Property Fund shall be able to stake any
digital assets held in this fund thr ough a third-party service.
I. Excess funds earned from interest, staking, or otherwise
authorized activities shall be paid to the State General Revenue
Fund, where, if permissi ble by law, shall be appropriated for law
enforcement activities related to digital assets.
J. The Oklahoma State Treasurer shall establish by rule a
process for returning digital assets to residents of the state who
have lost their digital assets, after the date of the passage of
this law, through:
1. Fraud;
2. Theft; or
3. Other criminal acts as determined by the Oklahoma State
Treasurer.
K. The Oklahoma State Treasurer at any time may use the assets
in the Digital Asset Property Fund to provide fund ing for the State
Rainy Day Fund.
L. The State Treasurer shall select a qualified custodian for
the management and safekeeping of digital assets under the Digital
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Asset Property Fund no later than a year after the enactment of this
legislation.
M. A qualified custodian shall be selected based on the ability
of the qualified custod ian to provide the following services:
1. Secure storage solutions to ensure the safekeeping of
digital assets, including robust cybersecurity measures to prevent
unauthorized access;
2. Capability to manage private keys associated with digital
assets and ensure the ability to transfer or transact with the
assets when required ;
3. Proven experience in handling digital assets, including
cryptocurrencies, stablecoins, fungible to kens, and non-fungible
tokens (NFTs);
4. Compliance with all applicable feder al and state regulations
related to digital asset custody ;
5. Processes to reunite owners with their assets ; and
6. Any other factors the State Treasurer deems relevant.
N. The qualified custodian selected through this process shall
enter into a formal agreement with the Office of the State
Treasurer. This agreement shall specify the custodian’s duties,
obligations, and compensation, as well as terms for termination and
auditing rights by the state.
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SECTION 5. NEW LAW A new sect ion of law to be codified
in the Oklahoma Statutes as Section 5005 of Title 62, unless there
is created a duplication in numbering, reads as follows:
A. The Oklahoma State Treas urer shall conduct a study analyzing
the role of precious metals and digital assets in augmenting,
stabilizing, and ensuring the economic security and prosperity of
the state, the families and residents of the state, and businesses
in the state.
B. The Oklahoma State Treasurer shall also study how
stablecoins can be used to:
1. Allow the state to send and receive payments at a reduced
cost compared to current methods;
2. Allow the state to have payments settle more quickly than
current methods;
3. Allow the state to earn a return for holding stablecoins;
4. Any other topic related to stablecoins as determined by the
Oklahoma State Treasurer; and
5. The Oklahoma State Treasurer shall post the results of the
study before the next legislative session.
SECTION 6. This act shall become effective November 1, 2025.
60-1-10301 MJ 01/12/25