New Bill in Oklahoma Proposes Depository for Cryptocurrencies Used by Government

A bill has been introduced in the U.S. state of Oklahoma to establish a new type of state-chartered financial institution that will be “the central depository for virtual currency used by governmental agencies in this state.” The new establishment aims to provide financial and technical services to crypto innovators and developers.

Also read: Regulatory Roundup: EU-Wide Crypto Regulations, New Rules in Europe, US, Asia

Proposed Crypto Depository for Government

A lawmaker has introduced a bill in the U.S. state of Oklahoma seeking to create a governmental crypto depository. Senate Bill 1430, authored by Senator Nathan Dahm, was introduced on Jan. 15, according to the government’s website. Its first reading is scheduled for Feb. 3. The bill reads:

The legislature hereby authorizes the State Banking Department and the Oklahoma Department of Commerce to coordinate and develop plans … [to establish] a new type of financial institution to be a state-chartered financial institution and the central depository for virtual currency used by governmental agencies in this state.

“The purpose of this new state-chartered financial institution shall be to provide valuable financial and technical services to blockchain and virtual currency innovators and developers,” the text of the bill details. It further states that “Oklahoma is committing to partner with innovative technology, help develop next generation financial products, and safely grow unique technical and financial sectors in this state.”

The proposed entity will be designed to easily integrate into existing banking and financial institution regulations and “have the highest level of expertise with customer identification, anti-money laundering and beneficial ownership components,” the bill adds. It will also be “fully supported by blockchain technology and innovations.” This act will become effective on Nov. 1, 2020, and the plans and implementation strategy must be submitted by July 1 next year.

Other Crypto-Related Bills in Oklahoma

Senator Dahm authored another crypto-related bill which was introduced in Oklahoma on Jan. 25, 2019. Senate Bill 843 had its first reading on Feb. 4 and second reading on Feb. 7 but has seen no progress since. According to the state’s Securities Department, this bill is modeled after HB 70 that was passed by the Wyoming legislature last year.

Senate Bill 843 states that “a developer or seller of an open blockchain token shall not be deemed the issuer of a security and a person who facilitates the exchange of an open blockchain token shall not be deemed a broker-dealer if certain conditions enumerated by the measure are met.” The state’s Securities Department has analyzed the fiscal impact of this bill on its revenues but concluded that it is not determinable since the subject matter is new to the state’s regulatory framework.

In April last year, the state passed Senate Bill 700 which Dahm co-authored. It modifies the definition of “electronic record” and “electronic signature” within the Uniform Electronics Transactions Act to include records or signatures secured through blockchain technology. The bill was approved by the governor on April 25, 2019.

Do you think Oklahoma needs a crypto depository for government use? Let us know in the comments section below.

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Images courtesy of Shutterstock and the state of Oklahoma.

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