HB 701 Protects the Right to Hold and Use Bitcoin Privately
Kentucky has enacted House Bill 701 (HB 701), a new law that explicitly guarantees citizens the right to self-custody their cryptocurrencies using private wallets. The bill, titled “An Act Relating to Blockchain Digital Assets,” passed unanimously in both chambers of the state legislature and was signed into law by Governor Andy Beshear on March 25.
The law prohibits local governments from enacting policies that discriminate against crypto mining operations and exempts mining and staking from being classified as securities under state law. It also removes these activities from Kentucky’s money transmitter licensing requirements, aligning the state with a growing movement to embrace blockchain-based technologies.
Push for a Kentucky Bitcoin Reserve Also Underway
In parallel with HB 701, the Kentucky legislature is reviewing another bill—HB 376—that proposes creating a state-managed crypto reserve. The bill would allow the state to allocate up to 10% of excess funds into digital assets with a market cap of $750 billion or more, effectively targeting bitcoin.
Kentucky joins states like Utah and North Carolina in enacting crypto-friendly legislation. With clear protections for self-custody and mining, the new law marks a major win for digital asset users and could set the tone for similar efforts nationwide.
