The Kentucky Senate Passes Legislation to Protect Bitcoin Self-Custody Rights and Digital Asset Mining Operations
Yesterday evening, the Kentucky Senate made a significant move by unanimously passing a bill that aims to safeguard Bitcoin self-custody rights and digital asset mining operations. The legislation, known as HB 701 and titled “AN ACT relating to blockchain digital assets,” received a decisive 37-0 vote and is now awaiting final approval from the Governor’s desk.
Spearheaded by Representatives Adam Bowling and T.J. Roberts, the bill reinforces individuals’ rights to self-custody digital assets through self-hosted wallets. It also prohibits local zoning laws from discriminating against digital asset mining businesses, ensuring that Bitcoin miners can freely operate within the state without unnecessary restrictions.
Key provisions outlined in the bill include:
– Protection for Bitcoin self-custody: Individuals are legally entitled to utilize and store digital assets in self-hosted wallets.
– Prohibition of discriminatory zoning laws: Local governments are barred from imposing zoning changes that unfairly target digital asset mining businesses.
– Exemptions from money transmitter licensing: Home Bitcoin miners and digital asset mining businesses are exempt from Kentucky’s money transmitter requirements.
– Clarification of securities laws: Digital asset mining and staking as a service are explicitly not classified as securities under Kentucky law.
The bill’s journey began with a resounding 91-0 vote in the Kentucky House on February 28, 2025, and swiftly made its way through the Senate with bipartisan support. The March 13 vote saw all 37 senators voting in favor, with zero opposed and one not voting.
Upon the Governor’s signature, the legislation will officially solidify Bitcoin self-custody protections and digital asset mining rights into Kentucky law. This move positions Kentucky as one of the more Bitcoin-friendly states in the country, potentially setting a precedent for other states to follow suit.
For more information on this legislative development, stay tuned to Bitcoin Magazine for updates. This article was originally authored by Nik and first appeared on Bitcoin Magazine.