Kentucky Becomes the First State to Enact a "Bitcoin Rights" Law

Kentucky Governor Andy Beshear signed the “Bitcoin Rights” bill into law on March 24, 2025, making it official that people in the state can use, store, and mine Bitcoin without restrictions.

Kentucky has officially joined the ranks of crypto-friendly states after Governor Andy Beshear signed the “Bitcoin Rights” bill into law on March 24.

House Bill 701, introduced by Representative Adam Bowling on February 19, quickly advanced through the state legislature. It passed the House with a unanimous 91-0 vote on February 28 and later obtained full approval in the Senate through a 37-0 vote on March 13.

The bill safeguards crypto users from discrimination and prevents local authorities from introducing biased rules against Bitcoin mining. It also ensures that mining and staking activities won't require special licenses or be categorized as financial securities.

Highlighting the significance of the new law, the Satoshi Action Fund, a crypto advocacy group, stated that the legislation guarantees the “right to self-custody, run a node, and use digital assets” without facing discrimination.

This implies that individuals in Kentucky can maintain custody of their crypto without any third-party involvement, and businesses have the freedom to operate blockchain systems without additional administrative burdens.

Moreover, the bill prevents local governments from enacting zoning regulations that could displace Bitcoin miners from specific areas. The aim is to foster a favorable environment for crypto users and businesses within the state.

In a separate development, lawmakers are also examining another proposal that would permit the state to invest in Bitcoin as part of its financial reserves.

If approved, the State Investment Commission would be authorized to allocate up to 10% of the state's excess funds into Bitcoin and other digital assets.

This development comes as several other states, including Oklahoma, Arizona, and Missouri, are considering similar plans for a Bitcoin reserve.

Oklahoma's Strategic Bitcoin Reserve Act recently passed the House of Representatives with a 77-15 vote and now awaits approval in the Senate.

Meanwhile, Arizona has made progress on two Bitcoin reserve bills, both of which passed a key committee and are advancing toward a full vote.

According to Bitcoin Laws, Oklahoma has now tied with Texas in the "State Bitcoin reserve race," while Arizona currently holds the leading position.

This shift in strategy indicates that more state governments are recognizing Bitcoin as a significant asset. Kentucky's new law further cements the state's status as one of the most crypto-friendly places in the U.S.