Kentucky Governor Andy Beshear has officially signed House Bill 701, known as the “Bitcoin Rights” bill, into law, reinforcing Kentucky’s stance as a bitcoin-friendly state and advancing its bitcoin regulation framework.
The legislation solidifies protection for bitcoin users, ensuring their right to bitcoin self-custody, the ability to run bitcoin nodes, and freedom to transact without discrimination, reinforcing Kentucky’s bitcoin-friendly approach.
The move comes as multiple U.S. states push forward with bitcoin reserve initiatives, signaling growing institutional recognition of bitcoin as a strategic asset.
Defining Bitcoin Rights and Self-Custody in Kentucky
Introduced by Representative Adam Bowling on Feb. 19, HB 701 establishes clear bitcoin regulation in Kentucky, offering legal protections for individuals using digital assets like bitcoin.
The bill:
- Protects the right to self-custody bitcoin and operate a node.
- Prevents local zoning restrictions targeting mining operations.
- Clarifies that mining and staking are not classified as securities.
- Excludes mining from money transmitter licensing requirements.
HB 701 passed unanimously in both chambers of Kentucky’s legislature before receiving Governor Beshear’s signature on March 24.
Kentucky’s Push for a State Bitcoin Reserve
Beyond HB 701, Kentucky is actively considering a bill to establish a state-backed Bitcoin Reserve, a move that aligns with a broader trend of bitcoin adoption in the U.S.
If passed, this measure would allow the State Investment Commission to allocate up to 10% of excess state reserves into digital assets, including bitcoin. The bill remains under review.
Oklahoma Advances Bitcoin Reserve Bill
Meanwhile, Oklahoma’s House of Representatives has approved the Strategic Bitcoin Reserve Act (HB 1203) with a 77-15 vote.
Introduced by Representative Cody Maynard on Jan. 15, the bill seeks to create a state-held bitcoin reserve. It now moves to the Senate for further deliberation.
Additionally, Oklahoma State Senator Dusty Deevers has introduced separate legislation that would allow state employees to receive their salaries in bitcoin.
Bitcoin Reserves Gain Traction Across the U.S.
Oklahoma’s progress places it alongside Texas in the state-level race for bitcoin reserves, according to Bitcoin Laws, a bitcoin legislation tracker.
Arizona leads the movement, with two strategic reserve bills advancing to a full House vote. Missouri is also reviewing its own bitcoin reserve proposal, while advocacy groups speculate that Oklahoma’s Republican-controlled Senate increases the likelihood of HB 1203 becoming law.
