Oklahoma’s House Bill 1203 limits state crypto investments to 5%, down from 10%, to manage market volatility, says Rep. Cody Maynard.
On Monday, the Oklahoma House of Representatives passed House Bill 1203, allowing the state to establish a strategic Bitcoin reserve by investing in cryptocurrency as part of its financial reserves and retirement funds.
The bill that has been passed by most Republican legislators allows the investment in digital assets with the market capitalization of over $500 million, which, at the moment, is possible only with Bitcoin.
Initially, the proposal allowed up to 10% of the state’s funds to be invested in cryptocurrencies, but it was amended to a 5% cap. State Rep. Cody Maynard, a Republican from Durant, clarified that the bill’s goal is to ensure digital asset investments do not exceed this limit, addressing concerns about market volatility.
Although the bill was approved with little or no opposition from the Republicans, it was opposed by the House Democrats. State Rep. Andy Fugate had some concerns regarding the absence of a rebalancing provision but was in support of the bill.
State Rep. Melissa Provenzano wondered if state retirees could exclude themselves from investing in crypto, to which Maynard replied that pensioners would not be able to avoid any type of investment.
After the House approval, the bill will be forwarded to the Oklahoma Senate for its consideration. If adopted, Oklahoma could be among the first states to include Bitcoin and other cryptocurrencies in its treasury.