Kentucky Governor Signs House Bill 701 to Protect Bitcoin and Crypto Rights
The bill received overwhelming bipartisan support, passing the House 91-0 and the Senate 37-0 earlier this year before final approval.
Key Provisions of HB 701: Empowering Crypto Users in Kentucky
HB 701, titled “An Act relating to blockchain digital assets,” introduces several important measures to support a crypto-friendly environment in Kentucky. The legislation guarantees that individuals have the right to hold and manage their cryptocurrencies in self-hosted wallets, giving Kentuckians complete control over their assets without government interference. It also prohibits local governments from enacting laws that discriminate against crypto mining operations and clarifies that mining and staking services will not be classified as securities under Kentucky law.
Exemptions for Crypto Activities in Kentucky
In addition, HB 701 ensures that operating blockchain nodes and engaging in staking activities are explicitly exempt from Kentucky’s money transmitter regulations, further encouraging crypto innovation and adoption. The law reflects a broader trend of U.S. states embracing cryptocurrency and blockchain, following the lead of Utah, which recently enacted similar legislation.
Kentucky Considers Crypto Reserve with HB 376
Kentucky is also reviewing a separate proposal, House Bill 376 (KY HB 376), which aims to create a crypto reserve for the state. If passed, HB 376 would allow the State Investment Commission to allocate up to 10% of excess state reserves into digital assets, particularly Bitcoin, which has a market cap exceeding $750 billion. However, HB 376 is still under review and has not yet become law, pending a vote in the House.
Editorial Team
Reporter at Coindoo
