Daniel Walker
Kentucky Governor Andy Beshear has officially signed House Bill 701 (HB 701) into law, providing strong legal protections for bitcoin and crypto users across the state.
The bill received overwhelming bipartisan approval, passing unanimously in both legislative chambers—91-0 in the House on February 28 and 37-0 in the Senate on March 13—before securing the governor’s final approval on March 18.
HB 701 Safeguards Crypto Ownership and Mining Rights
The newly enacted law, titled “An Act Relating to Blockchain Digital Assets,” introduces several key measures aimed at enhancing Kentucky’s crypto-friendly environment:
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Self-custody protections: Residents now have the explicit right to store and manage their crypto in self-hosted wallets without external interference.
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Crypto mining protections: Local governments are prohibited from enforcing discriminatory regulations against bitcoin mining operations.
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Regulatory clarity for staking and nodes: The law states that mining and staking activities are not considered securities under Kentucky law and are exempt from money transmitter regulations.
Kentucky Joins Growing List of Crypto-Friendly States
Kentucky’s legislative shift follows a broader national trend of U.S. states embracing blockchain technology and digital assets. Utah recently passed similar legislation, integrating crypto into its legal and economic framework to encourage further adoption.
In addition to HB 701, Kentucky lawmakers are also considering House Bill 376 (HB 376), which aims to establish a state-run Bitcoin reserve. If passed, the bill would authorize the State Investment Commission to allocate up to 10% of excess state reserves into digital assets with a market cap exceeding $750 billion, effectively allowing bitcoin investment at the state level.
However, HB 376 has yet to be approved and remains under deliberation in the House. If enacted, it could position Kentucky as a leader in state-backed crypto investments, further solidifying its stance as a pro-crypto state.
