A bill proposing the creation of a state-held Bitcoin reserve has passed a House of Representatives committee and will now advance to a full vote in the Oklahoma Legislature. It would allow the state to invest in Bitcoin as part of its financial reserves, potentially making Oklahoma one of the first U.S. states to officially hold crypto.
BTC Reserve Bill Enters Next Stage
The proposed legislation permits the state to allocate up to 10% of its unappropriated funds to Bitcoin, provided that the crypto’s total market capitalization exceeds $500 billion at the time of investment. This threshold ensures that the state only invests in Bitcoin during periods of relative market stability.
The bill, sponsored by Republican lawmakers, aims to diversify Oklahoma’s financial portfolio by leveraging Bitcoin as a hedge against inflation and economic uncertainty. Following committee approval, the bill now faces debate and voting by the full House of Representatives.
Notably, this is a crucial stage before the bill moves to the Senate and the governor’s desk for final law approval. Proponents argue that, like gold, Bitcoin could serve as a store of value and offer long-term fiscal benefits to the state.
However, opposition remains. Critics highlight Bitcoin’s volatility, regulatory uncertainty, and potential risks associated with investing public funds in a digital asset. Some lawmakers question whether state resources should be allocated to such an emerging asset class.
Other Similar Bills Face Rejection
Oklahoma’s Bitcoin reserve bill is progressing, but similar proposals in other states have faced setbacks. Montana’s bill, which aimed to invest $50 million in crypto, failed its second reading due to concerns over speculative use of taxpayer dollars. South Dakota’s bill to allocate 10% of state funds to Bitcoin was recently rejected by a House committee in a 9-3 vote.
Other states took cautious approaches but failed to advance their Bitcoin reserve plans. North Dakota’s HB 1184, introduced as experimental, was rejected with 57 votes against and 32 in favor. Pennsylvania’s HB 266, which sought to invest up to 10% of state funds in Bitcoin, was killed in the House by February 25.
Even Wyoming, a crypto-friendly state, saw its Bitcoin-exclusive reserve bill blocked by committee on February 6, and Mississippi’s HB 1590, proposing Bitcoin investments, was stopped in committee on February 17. Despite these failures, the number of Bitcoin-related proposals hints at growing interest in crypto at the state level.
