Nathan Dahm, a lawmaker in the U.S. state of Oklahoma, has proposed creating a state-chartered financial institution

By Dorothy On Jan 20, 2020

Mr. Nathan Dahm, Oklahoma Senator, wrote a new bill for his state. The goal is to establish a state-backed innovative financial institution around blockchain technology, creating a new classification of institutions. The state-chartered financial institution, if approved, would serve as a “central depository for virtual currencies used by government agencies in the state.”

Senate Bill 1430, authorized by Senator Nathan Dahm, was introduced on January 15, as the government website said. Public records were published via LegiScan, the proposed bill introduction date is February 3, showing that the bill is at its earliest development stage. On January 15, 2020, the bill noted that state-regulated financial institutions would be the central custodians for virtual currencies used by government agencies in the state.

“Blockchain technology and innovation will assist this new financial institution. Moreover, this new financial institution will have the highest level of expertise with anti-money laundering, customer identification, and beneficial ownership components.”

Even when approved, Dahm’s bill will not result in creating overnight deposits. Instead, it will empower the Department of State Bank and Oklahoma Department of Commerce to “coordinate and develop plans, make recommendations for Legislature and establish requirements and a strategy” fo its launch.

Dahm filed an invoice last February to find a way to set up when a digital token constitutes a type of security. He was also the sponsor of a separate set of laws, which was eventually approved and passed in April last year.

The purpose of this new state financial institution will be to provide valuable financial and technical services to developers and developers of currencies and virtual currencies.

The bill seems to give Oklahoma an active role in innovation. Oklahoma is committed to working with cutting-edge technology, helping develop next-generation financial products and securely developing unique financial and technical fields in this state. The bill will be introduced on February 3, 2020 and go into operation on November 1, 2020.

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