Kentucky Senate Passes Bill Protecting Bitcoin Self-Custody Rights

Yesterday evening, the Kentucky Senate unanimously passed a bill aimed at protecting Bitcoin self-custody rights and digital asset mining operations. With a decisive 37-0 vote, the legislation, titled AN ACT relating to blockchain digital assets (HB 701), now moves to the Governor’s desk for final approval.

NEW: Kentucky Senate passes bill that will protect Bitcoin self custody rights with 0 votes against it.

The bill now heads to the Governors desk. pic.twitter.com/HPciWIgpZO

— Bitcoin Magazine (@BitcoinMagazine) March 14, 2025

Sponsored by Representatives Adam Bowling and T.J. Roberts, the bill affirms the right of individuals to self-custody digital assets through self-hosted wallets. Additionally, it prevents local zoning laws from discriminating against digital asset mining businesses, ensuring that Bitcoin miners can operate freely within the state.

The bill outlines several key provisions, including:

Protection for Bitcoin self-custody: Individuals have the legal right to use and store digital assets in self-hosted wallets.

Prohibition of discriminatory zoning laws: Local governments cannot impose zoning changes that unfairly target digital asset mining businesses.

Exemptions from money transmitter licensing: Home Bitcoin miners and digital asset mining businesses are exempt from Kentucky’s money transmitter requirements.

Clarification of securities laws: Digital asset mining and staking as a service are explicitly not classified as securities under Kentucky law.

@Rawlings4Ky is carrying HB 701 which protects the use of digital assets and self-hosted wallets, prevents local zoning discrimination against digital asset mining businesses, and establishes guidelines for blockchain node operations. It shields node operators and staking… pic.twitter.com/1crnd8mqQS

— KY Senate Majority (@KYSenateGOP) March 13, 2025

After passing through the Kentucky House with a 91-0 vote on February 28, 2025, the bill moved swiftly through the Senate. The March 13 vote saw full bipartisan support, with 37 senators voting in favor, zero opposed, and one not voting.

The legislation now awaits the Governor’s signature, which would officially enshrine Bitcoin self-custody protections and digital asset mining rights into Kentucky law. If signed, Kentucky will become one of the more Bitcoin-friendly states in the country, setting a precedent for other states to follow.

This post Kentucky Senate Passes Bill Protecting Bitcoin Self-Custody Rights first appeared on Bitcoin Magazine and is written by Nik.

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