TLDR
- Marking a significant moment for crypto enthusiasts, Kentucky's Governor, Andy Beshear, has enacted the 'Bitcoin Rights' legislation (HB701), which ensures the protection of users' rights to handle their own cryptocurrency securely.
- With complete agreement, Kentucky's House and Senate have given their full support to this groundbreaking bill.
- In Oklahoma, the Strategic Bitcoin Reserve Act has successfully made its way through the State House with a 77-15 vote and is now slated for Senate consideration.
- A growing number of states, such as Arizona, Texas, and Missouri, are in the process of advancing policies related to Bitcoin reserves.
- In another bold move, Kentucky is proposing a bill that would permit the allocation of up to 10% of the state's surplus reserves towards digital assets.
Through the passing of the 'Bitcoin Rights' bill into law, Kentucky has taken a decisive step to benefit crypto users, while other states race to implement or enhance Bitcoin reserve measures, signaling a growing acceptance of digital currencies across the nation.
Governor Andy Beshear of Kentucky has officially signed House Bill 701, also known as the 'Bitcoin Rights' legislation, into law on March 24. The bill enjoyed overwhelming bipartisan support, with unanimous votes across both legislative chambers.
This newly passed law in Kentucky is designed to protect critical rights for crypto users, offering assurance for self-custody and the use of digital wallets without discriminatory practices.
Under the new legislation, changes in local zoning that could potentially hinder crypto mining are prohibited, thereby ensuring stability for these operations within the state.
House Bill 701 presents specific guidelines for operating a cryptocurrency node and exempts crypto mining from the need for a money transmitter license.
Another vital provision of the law clarifies that the processes of mining and staking do not amount to offering or selling a security, thus easing certain regulatory pressures on those involved.
The Satoshi Action Fund, a pro-crypto group, has applauded this legislation for safeguarding the 'right to self-custody, to operate a node, and to make use of digital assets' without fear of discrimination.
We’re excited to announce that the ‘Bitcoin Rights’ legislation is now officially law in Kentucky, having gained the signature of the Governor!
Millions of Americans now have the protection to self-custody their digital assets, run their own nodes, and freely use their cryptocurrencies without the threat of unfair treatment.
This effort would not… pic.twitter.com/ETH2I4CWw6
Kentucky's recently passed legislation is in line with measures taken by other states. In May 2024, Oklahoma's Governor Kevin Stitt signed a similar law into effect. March 24, 2025
The Competition for State Bitcoin Reserves Intensifies
In addition to safeguarding users' rights, Kentucky is considering establishing a Bitcoin reserve. There's a separate proposal under review that would allow the State Investment Commission to invest up to 10% of surplus state reserves in digital currencies, Bitcoin included.
The proposal for a state Bitcoin reserve is still under evaluation. If approved, Kentucky might join the ranks of other states that are either exploring or have implemented such reserves.
Oklahoma is progressing with its own legislative measures concerning a Bitcoin reserve. A recent vote by the State House of Representatives saw House Bill 1203, known as the Strategic Bitcoin Reserve Act, pass with 77 in favor to 15 against.
Introduced by state Representative Cody Maynard on January 15, the Oklahoma bill advanced through the Government Oversight Committee with a 12-2 vote on February 25.
For the Oklahoma initiative to become a law, it will need Senate approval followed by the Governor's signature.
Oklahoma is also gearing up with additional crypto-friendly legislation. On January 8, State Senator Dusty Deevers submitted a proposal that would let residents opt to receive their wages in Bitcoin.
According to a tracking group monitoring Bitcoin legislation, Oklahoma now shares the second spot with Texas in what has been termed the 'State Bitcoin reserve race,' with Arizona currently leading.
According to Bitcoin Laws, Arizona is advancing in its efforts to set up a Bitcoin reserve. Recently, two crucial digital asset reserve bills cleared the Arizona House Rules Committee on March 24.
These bills in Arizona are now set for a full vote on the House floor, placing the state at the forefront of those actively considering Bitcoin as a reserve asset.
Missouri is also contemplating a Bitcoin reserve initiative. Their Special Committee on Intergovernmental Affairs is in the midst of reviewing the proposed legislation.
The publication 'Bitcoin Laws' observes that the Oklahoma bill has a promising chance of becoming law owing to the Republican majority in both the Senate and the Governor's office.
The momentum towards adopting Bitcoin at the state level is a testament to the expanding acceptance of cryptocurrencies. The current legislative moves are intended to set forth clear standards for users and businesses within the crypto industry.
As more states begin to favor Bitcoin-friendly laws, a competitive climate might emerge where states vie to attract businesses and consumers in the cryptocurrency sphere, potentially spurring further advancements in state crypto policies.
The unanimous passage of Kentucky's bill in both chambers highlights a strong bipartisan interest in embracing cryptocurrency technologies and safeguarding user rights within the state.
Maisie brings her wealth of experience as a seasoned journalist in crypto and finance, having penned articles for Moneycheck.com, level-up-casino-app.com, and Computing.net. She currently holds the position of Editor in Chief at Blockfresh.com.
