Kentucky Passes "Bitcoin Rights" Law Protecting Cryptocurrency Users

The state of Kentucky has taken a major step forward for cryptocurrency users by passing a new law that protects their rights.

Kentucky has taken a major step forward for cryptocurrency users by passing a new law that protects their rights.

Governor Andy Beshear signed House Bill 701, often referred to as the “Bitcoin Rights” bill, on March 24. This makes Kentucky the latest state to create legal protections for people who use digital assets like Bitcoin.

The new law provides several important safeguards for residents of Kentucky who use cryptocurrency. It guarantees their right to hold their own crypto without needing to go through a third party. In the crypto world, this is called “self-custody.”

"We are proud to officially announce that ‘Bitcoin Rights' has been SIGNED INTO LAW by the Governor of Kentucky!

The right to self-custody, run a node, and use of digital assets is now protected for millions of Americans without fear of discrimination.

This effort would not… pic.twitter.com/ETH2I4CWw6

— Satoshi Action Fund (@SatoshiActFund) March 24, 2025

The legislation also expressly permits residents to run their own crypto nodes without fear of legal issues. A node is part of the computer network that helps keep track of cryptocurrency transactions. The law also bans any attempts by local zoning authorities to block crypto mining operations.

Crypto mining will not require money transmitter licenses under the new rules, removing a significant regulatory hurdle for miners in the state. The legislation also clarifies that mining and staking cryptocurrency are not considered offering or selling securities.

Support for the bill was overwhelming in Kentucky’s government. It passed the state’s House of Representatives on February 28 with all 91 representatives voting yes. When it moved to the state Senate, all 37 senators also voted in favor of the bill on March 13.

This isn’t the only state taking action on cryptocurrency. The bill is similar to legislation that Oklahoma passed in May 2024.

Oklahoma is also working on more crypto-friendly laws.

A bill that would create a reserve of Bitcoin for the Oklahoma government passed the State House of Representatives. The vote was 77 to 15 in favor of House Bill 1203, known as the Strategic Bitcoin Reserve Act.

State Representative Cody Maynard first introduced the bill on January 15. It passed through the Government Oversight Committee by a 12-2 vote on February 25. Now it needs to pass through the Oklahoma Senate before the governor can decide whether to sign it into law.

Another bill in Oklahoma could allow residents to get paid in Bitcoin. State Senator Dusty Deevers filed this legislation on January 8. If passed, workers could choose to receive their salaries in cryptocurrency instead of dollars.

According to the group Bitcoin Laws, Oklahoma is now tied with Texas for second place in what they call the “State Bitcoin reserve race.” Arizona is currently leading this unofficial competition between states.

Arizona has two strategic digital asset reserve bills that just cleared the House Rules Committee and are now headed to the Arizona House floor for a full vote. Bitcoin Laws believes that the Oklahoma bill has a good chance of becoming law due to the fact that Republicans control both the Oklahoma Senate and the governor’s office.

The state of Missouri is also considering creating a Bitcoin reserve. The Special Committee on Intergovernmental Affairs is currently reviewing a bill for the creation of a state-level strategic digital asset reserve.

This shows a broader interest in cryptocurrency among multiple states.

Kentucky has also introduced a separate bill that would allow the State Investment Commission to put up to 10% of excess state reserves into digital assets, including Bitcoin. This bill is still being reviewed and hasn't yet become law.

These state laws highlight a growing trend of government acceptance of cryptocurrency in the United States. As more states pass bills both protecting Bitcoin users and investing in the digital currency themselves, it could lead to more mainstream adoption.