The measure, passed unanimously, protects the rights to self-custody and mining, aiming to create a favorable environment for the industry in the U.S. state.
On March 14, Kentucky lawmakers unanimously passed bill HB 701, which strengthens the rights to self-custody and creates a favorable environment for mining operations in the state.
The bill, introduced by Representatives Adam Bowling and T.J. Roberts, explicitly guarantees citizens’ right to self-custody of their digital assets through non-custodial wallets.
The law also provides protections for mining operations, preventing discriminatory zoning regulations that could harm miners. Another change is that miners are no longer required to obtain a Money Transmitter license.
The Senate majority emphasized that “the bill protects node operators and staking providers from liability for validated transactions and exempts digital asset mining and staking from money transmitter and securities regulations.” The Attorney General’s Office will be authorized to enforce these exemptions.
The HB 701 law also safeguards individuals’ rights to use digital assets for payments, prohibiting taxes or additional fees on digital asset transactions beyond those imposed on standard financial payments.
After approval by both legislative chambers, the bill now awaits the governor’s signature.
