Kentucky’s Governor Andy Beshear has officially enacted House Bill 701, dubbed the “Bitcoin Rights” bill, which establishes vital protections for digital asset users within the state.
This legislation guarantees the right to self-custody, the permission to operate blockchain nodes, and safeguards against discrimination toward cryptocurrency mining activities.
Introduced by Representative Adam Bowling on February 19, the bill received unanimous approval from Kentucky’s House (91-0) on February 28 and the Senate (37-0) on March 13 before being signed into law on March 24.
The new law also relieves crypto mining operations from being subject to money transmitter license requirements and ensures that staking and mining activities are not categorized as securities.
In addition, Kentucky is exploring another piece of legislation that would permit the state to invest up to 10% of its excess reserves into Bitcoin (BTC). This proposal is still undergoing evaluation.
Other states are advancing Bitcoin-friendly legislation
Kentucky’s initiative aligns with a growing trend among various US states to promote Bitcoin-related laws. For instance, Montana is advancing a bill aimed at creating a reserve that would facilitate investments in Bitcoin, precious metals, and stablecoins.
Oklahoma has seen its Strategic Bitcoin Reserve Act successfully pass the State House of Representatives with a 77-15 vote and is now headed to the Senate. Additionally, a separate initiative in Oklahoma seeks to enable residents to receive their salaries in Bitcoin.
Arizona is also moving forward with two distinct bills—one focuses on establishing a digital asset reserve from confiscated cryptocurrencies, while the other proposes allowing up to 10% of state treasury funds to be invested in Bitcoin. Both pieces of legislation gained clearance from the House Rules Committee on March 24 and are now poised for a full House vote.
A group monitoring digital asset legislation highlights that Oklahoma is now on par with Texas in the “State Bitcoin Reserve Race,” with Missouri also considering a Bitcoin reserve proposal. The increasing state-level initiatives indicate a rising legislative interest in digital assets across the nation.