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- Oklahoma passed the Bitcoin Freedom Act, which permits state employees, businesses, and residents to make or receive payments in Bitcoin.
- The bill also provides for the voluntary acceptance of Bitcoin payments and some exemptions for digital asset companies from licensing.
Oklahoma has proposed the “Bitcoin Freedom Act,” a Senate bill filed by Senator Dusty Johnson. The new bill seeks to legalize the use of Bitcoin to receive payments and compensation from state entities, private entities, and individuals. This is a major development toward accepting cryptocurrency as a new financial platform.
The Bitcoin Freedom Act contains provisions of a voluntary payment scheme under which residents of Oklahoma can agree to be paid in Bitcoin. Both state and private sector employees can choose an agreed-upon Bitcoin price based on the market rate at the start of the pay period or at the time of payment.
This price will be recorded electronically, and employees can make changes at the beginning of every pay period. Businesses can also decide to make use of Bitcoin to acquire goods and services, thereby promoting the use of digital currency within the state’s economy.
The bill also provides that participation shall be voluntary, which is in line with the free market philosophy. The proposal also allows system users to use Bitcoin, U.S. dollars, or a combination of the two, which is beneficial to all parties involved.
Exemptions and State Treasurer’s Role
The bill states that some digital asset companies do not require state money transmitter licenses. This move aims to remove the barriers to compliance and encourage companies related to cryptocurrencies to operate in Oklahoma.
The State Treasurer is required to implement the Bitcoin payment system. The Treasurer will release a request for proposal (RFP) to engage the services of a digital asset company that will facilitate Bitcoin payments for state employees and vendors. The chosen firm must be under contract by January 1, 2026, so the payment system is up and running by this date.
Also, the Oklahoma Tax Commission will issue the final guidelines on taxation of Bitcoin payments by the same date to help taxpayers and businesses. Senator Dusty Dedevers noted that Bitcoin is a great way to mitigate inflation and keep the buying power of the people of Oklahoma.
He cited the current inflation rate in the United States, which is 2.7% as of late 2024, as well as other consequences of the dollar’s decline. Deevers highlighted the fact that Bitcoin is gradually integrating into the traditional financial system and the need to promote Oklahoma as the state that supports cryptocurrencies. He further said that the bill would put the state at the forefront of financial innovation in the US.
Supporting the Crypto Ecosystem
Oklahoma’s attempts to adapt to digital assets are not limited to the Bitcoin Freedom Act. In May 2024, Governor Kevin Stitt signed a bill that provides legal regulation for blockchain companies and protection for cryptocurrency mining. The law, which came into force in November 2024, has made the state suitable for Bitcoin mining.
The Bitcoin Freedom Act extends these measures and demonstrates Oklahoma’s intention to mainstream the use of digital assets within its economy and governing frameworks. If the bill passes, it will open the door for other states that are considering introducing such bills.
