Kentucky Enacts 'Bitcoin Rights' Law, Providing Protections for Digital Asset Users

Kentucky Governor Andy Beshear has given his approval to House Bill 701, also known as the "Bitcoin Rights" bill, which grants essential safeguards for digital asset users within the state.

This legislation guarantees the right to self-custody, the capacity to operate blockchain nodes, and safeguards against discrimination towards crypto mining operations.

Launched by Representative Adam Bowling on February 19, the bill received unanimous support from Kentucky’s House (91-0) on February 28 and Senate (37-0) on March 13 before being enacted into law on March 24.

We are proud to officially announce that ‘Bitcoin Rights’ has been SIGNED INTO LAW by the Governor of Kentucky!

The right to self-custody, run a node, and use of digital assets is now protected for millions of Americans without fear of discrimination.

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Furthermore, the law excludes crypto mining from money transmitter license prerequisites and prevents staking and mining activities from being categorized as securities.

At the same time, Kentucky is contemplating another bill that would enable the state to invest up to 10% of its surplus reserves into Bitcoin (BTC). This proposition is still under examination.

Kentucky's action coincides with numerous other US states progressing with Bitcoin-related legislation. Montana has advanced a bill intending to create a reserve for investments in Bitcoin, precious metals, and stablecoins.

Oklahoma's Strategic Bitcoin Reserve Act has been approved by the State House of Representatives with a 77-15 vote and is now moving to the Senate. Additionally, an Oklahoma bill aims to enable residents to receive their salaries in Bitcoin.

Arizona is also making strides with two bills – one that establishes a digital asset reserve from confiscated cryptocurrencies and another permitting up to 10% of state treasury funds to be allocated to Bitcoin. Both bills have passed the House Rules Committee on March 24 and are set for a full House vote.

Bitcoin Laws, an organization that monitors digital asset legislation, points out that Oklahoma is now equal with Texas in the "State Bitcoin Reserve Race," while Missouri is also evaluating a Bitcoin reserve proposal. The increasing number of state-level initiatives indicates a rising interest in digital assets among legislators across the U.S.