Kentucky Governor Signs Bitcoin Rights Bill Into Law

Kentucky Governor Andy Beshear has signed the "Bitcoin Rights" bill, known as HB701, into law. This legislation, which passed unanimously in both the Kentucky House of Representatives and the state Senate, aims to protect the rights of digital asset users within the state. The bill ensures that residents have the right to self-custody their Bitcoin assets, run a node, and use digital assets without fear of discrimination. It also exempts crypto mining from money transmitter license requirements and clarifies that mining and staking are not considered offering or selling a security.

The legislation was first introduced to the Kentucky House by Rep Adam Bowling on February 19. It safeguards the right to use digital assets and self-custody wallets, and bans local zoning changes that discriminate against crypto mining. The bill passed the House of Representatives on February 28, with all 91 representatives voting in favor, and the state Senate on March 13, with all 37 senators voting in favor.

The "Bitcoin Rights" bill mirrors similar legislation signed into law by Oklahoma Governor Kevin Stitt in May 2024. Kentucky has also introduced a bill to establish a Bitcoin reserve, allowing the State Investment Commission to allocate up to 10% of excess state reserves into digital assets, including Bitcoin. This bill is still under review.

In addition to Kentucky's legislative developments, Oklahoma's Strategic Bitcoin Reserve Act, known as HB 1203, passed the State House of Representatives with a vote of 77 to 15. The bill, introduced by state Representative Cody Maynard, must now pass through the Senate before it can be signed into law by the Oklahoma governor. Oklahoma state Senator Dusty Deevers also filed legislation that would allow residents in the state to receive salaries in Bitcoin.

Meanwhile, Arizona remains in the lead in the state Bitcoin reserve race, with two strategic digital asset reserve bills clearing the House Rules Committee and heading to the House floor for a full vote. Missouri's Special Committee on Intergovernmental Affairs is also evaluating the state's Bitcoin reserve bill. These developments indicate a growing trend of states enacting legislation to protect and promote the use of digital assets.

Ask Aime: What is the impact of Kentucky's signing of the "Bitcoin Rights" bill into law, and how does it affect Kentucky residents' digital asset use?

This legislation is a significant step forward for the crypto community, as it provides clear guidelines and protections for digital asset users. The bill's passage in Kentucky, along with similar legislation in other states, reflects a broader trend of governments recognizing the importance of digital assets and taking steps to integrate them into the financial landscape. The "Bitcoin Rights" bill ensures that residents have the right to self-custody their Bitcoin assets, run a node, and use digital assets without fear of discrimination. It also exempts crypto mining from money transmitter license requirements and clarifies that mining and staking are not considered offering or selling a security. This legislation is a significant step forward for the crypto community, as it provides clear guidelines and protections for digital asset users. The bill's passage in Kentucky, along with similar legislation in other states, reflects a broader trend of governments recognizing the importance of digital assets and taking steps to integrate them into the financial landscape.