Kentucky's leader, Andy Beshear, has ratified House Bill 701, also recognized as 'An Act regarding blockchain digital assets,' permitting the utilization of cryptocurrencies and self-custodial wallets within the state's borders. legal protections The new law introduces amendments that free certain blockchain activities from heavy-handed regulations associated with money transmission and securities.
Gaining unanimous support from both legislative houses, the law empowers individuals to manage their cryptocurrencies independently and ensures fair tax treatment for digital currency transactions, aligning them with traditional payment methods.
You Can Own BTC in KY!
This legislation legalizes activities like running blockchain nodes and staking, anticipated to enhance Kentucky’s digital infrastructure. Under this law, specific blockchain operations are free from restrictive money transfer and securities regulations.
These legal updates aim to minimize regulatory barriers for blockchain enterprises, positioning Kentucky as a more appealing locale for investment into the digital asset sector.
House Bill 701 (HB701) made its debut in the House on February 19 and rapidly received backing. Following thorough committee analyses and readings, the House passed the bill with overwhelming support on February 28, with a 91-0 vote, coupled with a Committee Substitute.
The Senate quickly picked up the bill, passing it decisively on March 13, with a unanimous 37-0 vote of approval.
The bill received final sign-offs and enrollments from the House Speaker and Senate President on March 14, and was forwarded to Governor Beshear. On March 24, with his signature, the Bitcoin Rights bill officially became state law.
In tandem with HB701, Kentucky legislators also presented another piece of legislation known as House Bill 376, dubbed the 'Inflation Protection Act of 2025,' in February.
This bill primarily seeks to update the state's financial operations by integrating digital assets and precious metals into their investment and payment frameworks, while notably preventing central bank digital currencies (CBDCs).
The proposed law would grant the State Investment Commission the authority to invest in digital assets and precious metals.
Digital assets eligible for investment should have a market capitalization surpassing $750 billion based on the previous year’s averages. At the moment, Bitcoin is the sole cryptocurrency meeting this benchmark.
As per CoinGecko's data, Bitcoin's market cap stands at $1.7 trillion, whereas Ethereum, the next largest cryptocurrency, registers at approximately $249 billion.
The legislation would also authorize state retirement and deferred compensation fund members to invest in products linked to digital assets on exchanges.
Currently, the bill is awaiting review within the House Banking and Insurance Committee.
Bitcoin Climbs Past $87,000 Amid States' Bitcoin Reserve Exploration
An increasing number of U.S. states are considering the establishment of strategic Bitcoin reserves. As of March, legislation proposing state-level Bitcoin reserves has been introduced across 28 states.
Federal interest is also building. The Trump administration is devising budget-neutral means of acquiring more Bitcoin, ensuring taxpayers incur no additional costs, as outlined in the President’s March 6 executive order.
Present at around 200,000 BTC, the Strategic Bitcoin Reserve is funded by Bitcoin seized through legal proceedings. The U.S. government intends to hold onto these assets as a long-term store of value, refraining from sale.
Amid positive legislative trends, Bitcoin's market price has remained relatively unaffected, with broader economic influences proving more impactful.
Bitcoin's valuation has remained above $87,000 following a recent FOMC meeting, where Fed Chairman Jerome Powell's remarks indicated no aggressive policy changes despite their careful approach.
Markus Thielen of 10x Research suggests that prevailing political and economic conditions might create room for easing, potentially propelling Bitcoin beyond the $90,000 mark.
Hovering around $87,200, Bitcoin has seen a near 5% rise over the past week, though it has displayed minimal fluctuations in the last 24 hours.
Nicholas Say, a native of Ann Arbor, Michigan, boasts extensive travel experience, having resided in Uruguay, and now calls the Far East his home. His work, which frequently explores technological advancement and future human progress, can be found online.
