Governor Andy Beshear of Kentucky approved the “Bitcoin Rights” bill which will provide legal safeguards for users and cryptocurrency miners. Under the legislation, users can maintain custody of their digital assets as well as operate cryptocurrency nodes avoiding discrimination related to digital assets. The new law ensures no local government can establish limiting regulations for crypto mining activities.

Kentucky Enacts Bitcoin Rights Bill

Kentucky Governor Andy Beshear signed House Bill 701 (HB 701) into Kentucky State law to offer legal protection to crypto users. Under HB 701 individuals have the right to maintain ownership of their digital assets along with the authority to run blockchain nodes and participate in cryptocurrency deals free from discrimination.

The Satoshi Action Fund verified the signature of the bill in a March 24 statement to X while stressing that the law shields digital asset users against discriminatory outcomes. Legislature members signed off on the bill under the sponsorship of Rep. Adam Bowling after he sought its introduction to the Kentucky House of Representatives on February 19.

Key Provisions of the Bitcoin Rights Bill

The established Kentucky law provides sheltered security to both crypto hashing operations and user wallets. Local governments in Kentucky are prohibited from implementing zoning laws that create discrimination against cryptocurrency mining establishments.

Additionally, cryptocurrency miners do not demand a money transmitter license according to HB 701. Under the updated law mining and staking operations meet specific criteria that make them exempt from securities classification thus streamlining business operations for all stakeholders.

Bitcoin Reserve Legislation in Kentucky

Alongside the Bitcoin Rights Bill, Kentucky has introduced another proposal focused on digital asset reserves. The bill would allow the State Investment Commission to allocate up to 10% of excess state reserves into BTC and other digital assets. This measure is still under review and has not yet been passed into law.

If approved, Kentucky would join other states considering Bitcoin reserves as part of their financial strategies. The proposal reflects the growing interest in integrating Bitcoin into government investment portfolios.

Other US States Advancing Crypto Legislation

Other states are also progressing with Bitcoin-related laws. In Oklahoma, House Bill 1203 (HB 1203), also known as the Strategic Bitcoin Reserve Act, recently passed the State House of Representatives with a vote of 77-15. However, it has to move through the Senate before reaching the governor for approval.

Additionally, Arizona has advanced two digital asset reserve bills, which have cleared the House Rules Committee and are awaiting a full vote. Missouri is also evaluating a Bitcoin reserve bill, indicating a broader trend of states exploring cryptocurrency-related policies.

Bitcoin Laws, a tracker for cryptocurrency legislation, reported that Oklahoma is now tied with Texas in the race to establish a state Bitcoin reserve. With Arizona leading in digital asset reserve initiatives, multiple states are actively considering how to incorporate Bitcoin into their financial frameworks.

Future Outlook for Bitcoin Legislation

The approval of Kentucky’s Bitcoin Rights Bill marks a step toward clearer cryptocurrency regulations in the state. As more states introduce BTC-related laws, the regulatory landscape for digital assets continues to evolve.

With growing interest in state-backed Bitcoin reserves and protections for crypto users, legislative developments in Kentucky and other states could shape future policies at the national level.