Oklahoma House Approves Bitcoin Investment Bill, Awaits Senate Decision

• Oklahoma lawmakers approve a bill to invest in Bitcoin for state reserves and retirement funds. The bill moves to the Senate.
• The bill allows investing in digital assets with over $500 million market value. Currently only Bitcoin meets this requirement.
• If the Senate approves the bill Oklahoma will become one of the first states to add Bitcoin to its financial strategy.

On Monday, the Oklahoma House of Representatives approved House Bill 1203. The law enables the state to invest its financial reserves and retirement funds into Bitcoin. The Senate needs to approve the bill for Oklahoma to secure its position as a pioneer in treasury cryptocurrency adoption.

Investment Guidelines and Restrictions

The bill enables investment in digital assets with market capitalization that exceeds $500 million. Bitcoin remains the only cryptocurrency meeting the qualification criteria at present. The original proposal established a 10% maximum investment amount but lawmakers decreased it to 5%. The modified policy seeks to control financial risks stemming from market swings.

Republican Support and Democratic Concerns

Most Republican legislators backed the bill, emphasizing the need to diversify state reserves. They believe digital assets could strengthen the financial portfolio. The bill’s sponsor explained that the 5% cap ensures responsible investment without excessive exposure.

Democratic lawmakers expressed concerns. Some questioned the absence of a portfolio rebalancing mechanism. Others asked whether retirees could exclude crypto investments. The bill does not provide an opt-out option for pensioners. Despite opposition, the bill secured enough votes to advance.

Potential Impact on State Finances

If the Senate approves the bill, Oklahoma will officially add Bitcoin to its financial strategy. This move could influence other states considering similar investments. Digital assets continue gaining traction in institutional finance. Oklahoma’s decision may shape future policies on cryptocurrency investments in government reserves.

The bill now heads to the Oklahoma Senate for further review. If approved, it will become law, allowing the state to proceed with Bitcoin investments. Lawmakers will monitor market trends and assess risks before making further adjustments.