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Ruholamin Haqshanas
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Ruholamin Haqshanas
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Kentucky Governor Andy Beshear has officially signed House Bill 701, known as the “Bitcoin Rights” bill, into law—making the state one of the latest to enact legislation protecting digital asset users and operations.
According to the Satoshi Action Fund, a crypto advocacy group, the bill secures key rights for individuals using digital assets.
These include the right to self-custody, operate blockchain nodes, and transact with digital currencies without the threat of discrimination.
It also prevents local governments from introducing zoning rules that target crypto mining operations.
HB701 Introduced to Protect Crypto Users’ Rights in Kentucky
Introduced by Representative Adam Bowling on February 19, HB701 lays out comprehensive protections for crypto users in Kentucky.
It ensures that using digital wallets for personal asset storage is protected, and it shields mining and staking activities from being classified as securities offerings.
The bill also exempts crypto mining from money transmitter licensing requirements and defines operational guidelines for running a node.
The legislation passed unanimously through both chambers of the state legislature.
The House approved it 91-0 on February 28, followed by a 37-0 vote in the Senate on March 13. Governor Beshear signed it into law on March 24.
In parallel, Kentucky is considering another bill that would authorize the State Investment Commission to allocate up to 10% of excess state reserves into Bitcoin and other digital assets. That proposal remains under legislative review.
Other states are making similar moves. Oklahoma’s Strategic Bitcoin Reserve Act (HB 1203), introduced by Representative Cody Maynard, recently passed the House with a 77-15 vote and is awaiting a Senate decision.
A related bill from State Senator Dusty Deevers seeks to allow Oklahoma residents to receive their salaries in Bitcoin.
According to Bitcoin Laws, a group tracking digital asset legislation, Oklahoma now ranks alongside Texas in second place in the race to establish state-level Bitcoin reserves.
Missouri is also in the mix, with its Special Committee on Intergovernmental Affairs reviewing its own Bitcoin reserve proposal.
Arizona Advances Crypto Reserve Legislation to Full House Vote
In a related development, two key bills in Arizona cleared the House Rules Committee on March 24.
The two bills in question are Senate Bill 1373, known as the Strategic Digital Assets Reserve Bill, and Senate Bill 1025, titled the Arizona Strategic Bitcoin Reserve Act.
SB 1373 outlines the creation of a digital assets reserve composed of cryptocurrencies confiscated through criminal proceedings.
Arizona’s state treasurer would manage the fund, with strict investment guidelines. Specifically, no more than 10% of the reserve’s total value could be invested annually.
SB 1025 focuses specifically on Bitcoin, allowing the state treasury and retirement system to allocate up to 10% of their available funds into the cryptocurrency.
It also includes provisions for securely storing the Bitcoin reserve in a segregated account within a potential federal Bitcoin reserve, should one be formed in the future.
