Kentucky Governor Signs Bitcoin Rights Bill into Law
Kentucky Governor Andy Beshear has officially signed the “Bitcoin Rights” bill, House Bill 701, into law. This groundbreaking legislation offers strong protections for Bitcoin users and miners in the state.
The bill ensures individuals can self-custody digital assets and operate a Bitcoin node without fear of local discrimination. It also shields Bitcoin mining operations from restrictive zoning laws.
This move follows growing state-level momentum to enshrine Bitcoin rights across the U.S.
Mining and Node Operations Protected
One of the bill’s key components is the guarantee of fair treatment for Bitcoin miners. Local governments can no longer use zoning laws to target Bitcoin mining activities unfairly.
In addition, operating a Bitcoin node — the backbone of the decentralized network — is now protected under Kentucky law.
The bill also states that crypto mining and staking do not qualify as securities, providing further legal clarity.
Exemption From Money Transmitter Licensing
House Bill 701 exempts Bitcoin mining operations from Kentucky’s money transmitter licensing requirements. This provision removes red tape for both individuals and businesses involved in digital asset infrastructure.
The legislation also defines legal boundaries, helping prevent future misclassification of mining activities as financial services.
Bipartisan Support Reflects Bitcoin’s Growing Legitimacy
The bill passed unanimously in both chambers of the Kentucky legislature. This rare bipartisan backing highlights how Bitcoin has gained widespread political support at the state level.
Rep. Adam Bowling, the bill’s sponsor, emphasized the need to protect innovation and individual rights. “This bill sends a clear message: Kentucky welcomes Bitcoin and its technological benefits,” he said.
Other States Join the Bitcoin Reserve Race
While Kentucky cements rights for individuals and businesses, other states are racing to establish strategic Bitcoin reserves.
Oklahoma’s Strategic Bitcoin Reserve Act passed the House by a 77–15 margin and awaits a Senate vote. The bill would allow Oklahoma to invest up to 10% of its excess reserves in Bitcoin.
In Arizona, two digital asset reserve bills passed the House Rules Committee and now await full votes. Missouri is also evaluating a similar reserve proposal.
The Bitcoin State Movement Gains Momentum
Kentucky’s law marks a new chapter in U.S. Bitcoin policy. By clearly protecting mining, node operations, and self-custody, it creates a model for other states.
As Bitcoin adoption grows, the ability of state governments to offer regulatory clarity becomes crucial. Laws like HB 701 may influence national policy debates.
