TLDR
- Kentucky Governor Andy Beshear signed the “Bitcoin Rights” bill (HB701) into law on March 24
- The law protects crypto users’ rights to self-custody, run nodes, and use digital assets without discrimination
- Crypto mining is excluded from money transmitter license requirements and not considered offering securities
- Oklahoma’s Strategic Bitcoin Reserve Act passed the State House of Representatives 77-15 on the same day
- Multiple states including Arizona, Texas, and Missouri are advancing Bitcoin reserve legislation
Kentucky has taken a bold step in cryptocurrency legislation by passing a bill that grants crypto users certain protections while other states push forward with Bitcoin reserve initiatives.
Kentucky Governor Andy Beshear signed House Bill 701, known as the “Bitcoin Rights” bill, into law on March 24. The bill passed with unanimous support in both chambers of the state legislature.
The legislation gives Kentucky residents several key protections. It safeguards their right to use digital assets and self-custody wallets without fear of discrimination.
The bill also prevents local governments from making zoning changes that would discriminate against cryptocurrency mining operations. This protection is important for miners in Kentucky who invest in equipment and facilities.
Mining and Node Operations Protected
Under the new law, cryptocurrency mining operations will not need to obtain money transmitter licenses. This removes a major regulatory hurdle for mining businesses in the state.
The legislation also clarifies that mining and staking activities are not considered offering or selling a security. This helps protect these operations from certain securities regulations.
Kentucky’s bill provides guidelines for running a cryptocurrency node. This technical aspect of the law helps ensure node operators understand their rights and responsibilities.
The Satoshi Action Fund, a cryptocurrency advocacy group, praised the legislation. They stated the law ensures Kentuckians can use digital assets without “fear of discrimination.”
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.
This effort would not… pic.twitter.com/ETH2I4CWw6
— Satoshi Action Fund (@SatoshiActFund) March 24, 2025
The bill was first introduced to the Kentucky House by Representative Adam Bowling on February 19. It moved quickly through the legislative process with strong support.
All 91 representatives voted in favor of the bill when it passed the Kentucky House on February 28. The state Senate followed suit on March 13, with all 37 senators voting to approve the measure.
State Bitcoin Reserves Gaining Momentum
Kentucky has also introduced a separate bill to establish a Bitcoin reserve. This legislation would allow the State Investment Commission to put up to 10% of excess state reserves into digital assets, including Bitcoin.
On the same day Kentucky’s governor signed the Bitcoin Rights bill, Oklahoma’s House Bill 1203 cleared a major hurdle. The Strategic Bitcoin Reserve Act passed the Oklahoma State House of Representatives by a vote of 77 to 15.
Oklahoma’s bill must still pass through the Senate before reaching the governor’s desk. Bitcoin Laws, a legislation tracking group, notes that with Republicans dominating the Oklahoma Senate and a Republican governor, the bill “has a good chance to pass into law.”
Oklahoma State Senator Dusty Deevers has filed additional cryptocurrency legislation. His bill would allow Oklahoma residents to receive their salaries in Bitcoin.
Arizona remains at the forefront of the state Bitcoin reserve movement. Two strategic digital asset reserve bills cleared Arizona’s House Rules Committee on March 24 and are headed to the House floor for a full vote.
Texas is tied with Oklahoma for second place in what Bitcoin Laws calls the “State Bitcoin reserve race.” Missouri is also making progress, with its Special Committee on Intergovernmental Affairs currently evaluating the state’s Bitcoin reserve bill.
Kentucky’s Bitcoin Rights law mirrors similar legislation signed into law by Oklahoma Governor Kevin Stitt in May 2024. This suggests a growing trend of state-level protections for cryptocurrency users and businesses.
The unanimous support for Kentucky’s bill in both legislative chambers suggests strong bipartisan backing for cryptocurrency rights in the state. This could set a precedent for other states considering similar legislation.
As more states consider Bitcoin reserve legislation and user protections, the landscape for cryptocurrency in the United States continues to evolve at the state level while federal regulations remain unclear.
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