Kentucky Governor Signs Bitcoin Rights Bill into Law

Kentucky Governor Andy Beshear has signed into law House Bill 701, also known as “An Act relating to blockchain digital assets,” a bill that enables legal protections for crypto use and self-hosted wallets in the state.

The legislation includes amendments that exempt certain blockchain operations from stringent money transmission and securities regulations.

You Can Own BTC in KY!

The law, supported unanimously in both legislative chambers, allows individuals to control their crypto without external interference. It also prevents discriminatory taxation of digital asset transactions, meaning that users are treated equitably compared to traditional payment methods.

The new legislation will legalize the operation of blockchain nodes and staking, a move expected to bolster Kentucky’s digital infrastructure. Under the law, certain blockchain activities will be exempt from money transmission and securities rules.

These amendments are aimed at reducing the regulatory burden on blockchain businesses, making Kentucky a more attractive destination for investment. The new law could effectively position the state as a hub for the digital asset industry.

House Bill 701(HB701) was introduced in the House on February 19, where it quickly gained support. Following a series of committee reviews and readings, the House passed the bill with overwhelming support on February 28 by a vote of 91-0, accompanied by a Committee Substitute.

The Senate took up the measure shortly thereafter, ultimately passing it on March 13, with an equally decisive 37-0 vote.

After receiving final enrollment and signatures from both the Speaker of the House and the President of the Senate on March 14, the bill was delivered to Governor Beshear for approval. His signature on March 24 officially enshrined the Bitcoin Rights bill into state law.

In addition to HB701, Kentucky lawmakers also introduced House Bill 376, titled “Inflation Protection Act of 2025,” in February.

The bill’s primary goals are to modernize state financial practices by incorporating digital assets and bullion into investment and payment systems while prohibiting the use of central bank digital currencies (CBDCs).

Under the proposed legislation, the State Investment Commission would be authorized to invest in digital assets and bullion.

However, only digital assets with a market capitalization exceeding $750 billion, averaged over the previous calendar year, are authorized for investment. Currently, Bitcoin is the only digital asset that meets this criterion.

According to CoinGecko data, Bitcoin’s market cap currently stands at $1.7 trillion, while Ethereum, the second-largest cryptocurrency, has a market cap of around $249 billion.

The bill would also allow state retirement funds and deferred compensation fund participants to invest in exchange-traded products linked to digital assets.

The bill is currently pending in the House Banking and Insurance Committee.

Bitcoin Surges Past $87,000 as States Explore Reserve Strategies

A growing number of U.S. states are examining the implementation of strategic Bitcoin reserves. As of March, 28 U.S. states have introduced legislation to establish state-level strategic Bitcoin reserves.

The concept is also gaining traction at the federal level. The Trump administration is exploring budget-neutral strategies to acquire additional Bitcoin without imposing costs on taxpayers, which is part of the President’s executive order issued on March 6.

The Strategic Bitcoin Reserve is currently capitalized with Bitcoin seized through criminal or civil asset forfeiture proceedings, currently estimated at around 200,000 BTC. The U.S. government will not sell these Bitcoin units, instead holding them as a long-term store of value.

Although legislative developments have been positive, Bitcoin’s price has shown little reaction to these narratives. Macroeconomic factors are proving more influential.

Bitcoin has stayed above $87,000 following Fed Chairman Jerome Powell’s speech post-FOMC meeting last week, where he, despite being cautious, did not show a hawkish stance.

According to Markus Thielen of 10x Research, political and economic conditions are laying the groundwork for potential easing, which might lead Bitcoin to recover toward $90,000.

Bitcoin is currently trading at around $87,200, up almost 5% in the last 7 days. The digital asset shows little changes over the past 24 hours.