Kentucky Governor Andy Beshear has signed the Bitcoin Rights bill into law, marking a significant step in the state’s approach to cryptocurrency regulation. Officially known as House Bill 701, the legislation protects the rights of Kentuckians to use, hold, and mine cryptocurrencies without facing discriminatory regulations.
The bill passed unanimously through both the Kentucky House (91-0) and Senate (37-0), reflecting bipartisan support for blockchain technology.
The law explicitly bans local governments from enacting zoning changes that unfairly target cryptocurrency mining operations. Additionally, it clarifies that mining and staking activities do not require a money transmitter license and are not classified as securities offerings.
This removes significant legal hurdles, fostering an environment where individuals and businesses can confidently engage with digital assets.
Kentucky’s move mirrors similar legislation in Oklahoma, where Governor Kevin Stitt signed a comprehensive crypto bill into law in May 2024. Oklahoma’s legislation protects self-custody and mining while prohibiting discriminatory energy rates for crypto businesses. Kentucky’s bill, however, goes a step further by explicitly addressing local zoning issues, a provision that could set a precedent for other states.
The timing of Beshear’s signing is notable, as it coincided with Oklahoma’s Strategic Bitcoin Reserve Act passing its State House of Representatives (77-15) on the same day.
This bill aims to establish a state-managed Bitcoin reserve, signaling a growing trend among states to integrate digital assets into their financial frameworks. Kentucky itself has a similar bill under review, which could allow up to 10% of excess state reserves to be allocated to cryptocurrencies like Bitcoin.
Shogun Lin
