Key Takeaways
- The law ensures the right to self-custody digital assets, operate blockchain nodes, and engage in crypto mining without facing discriminatory regulations.
- It clarifies that crypto mining and staking activities are not classified as securities offerings.
Kentucky Governor Andy Beshear has signed House Bill 701, dubbed as the “Bitcoin Rights” bill, into law, providing added protections for crypto users and miners in the state. The law ensures the right to self-custody digital assets, operate blockchain nodes, and engage in crypto mining without discrimination
The bill, introduced by Representative Adam Bowling on February 19, bans local governments from using zoning laws to target digital asset mining operations. It also exempts home-based miners and larger mining companies from Kentucky’s money transmitter license requirements. Additionally, it clarifies that crypto mining and staking activities are not classified as securities offerings.
HB 701 passed Kentucky’s House of Representatives on February 28 with unanimous approval from all 91 members and later cleared the Senate on March 13 with all 37 senators voting in favor.
The bill closely follows a similar measure enacted in Oklahoma in May 2024, which also protects crypto miners from restrictive zoning changes and regulatory hurdles.
In addition to the Bitcoin Rights bill, Kentucky lawmakers are considering another proposal that would allow the State Investment Commission to allocate up to 10% of excess state reserves into digital assets, including Bitcoin. The bill remains under review.
Meanwhile, Oklahoma’s House Bill 1203, known as the Strategic Bitcoin Reserve Act, recently passed the State House of Representatives with a 77-15 vote.
Introduced by Representative Cody Maynard in January, the bill cleared the Government Oversight Committee with a 12-2 vote on February 25. It now awaits approval from the state Senate before reaching the governor’s desk. If signed into law, Oklahoma would become the first U.S. state to officially hold Bitcoin as part of its treasury reserves.
Additionally, Oklahoma State Senator Dusty Deevers has introduced a separate bill that would allow residents to receive their salaries in Bitcoin
