Kentucky Enacts Bitcoin Rights Bill as State Bitcoin Reserves Gain Momentum

TLDR

• Kentucky Governor Andy Beshear signed the “Bitcoin Rights” bill (HB701) into law, protecting crypto self-custody rights
• The bill passed with unanimous support in both Kentucky’s House and Senate
• Oklahoma’s Strategic Bitcoin Reserve Act passed the State House (77-15) and now heads to the Senate
• Multiple states including Arizona, Texas, and Missouri are advancing Bitcoin reserve legislation
• Kentucky has also introduced a bill to allow up to 10% of excess state reserves to be allocated to digital assets

Kentucky has taken a strong step forward for cryptocurrency users by signing the “Bitcoin Rights” bill into law, while several other states push ahead with Bitcoin reserve legislation. The movement shows growing acceptance of digital assets at the state level across America.

Kentucky Governor Andy Beshear signed House Bill 701, known as the “Bitcoin Rights” bill, into law on March 24. The bill received overwhelming support, passing with all 91 representatives and all 37 senators voting in favor of the legislation.

The new law protects several key rights for cryptocurrency users in Kentucky. It safeguards the right to use digital assets and self-custody wallets without fear of discrimination.

The legislation also bans local zoning changes that might discriminate against crypto mining. This provides certainty for mining operations in the state.

HB701 sets out guidelines for running a cryptocurrency node. It also specifically excludes crypto mining from money transmitter license requirements.

Another important aspect of the law is that it clarifies that mining and staking activities are not considered offering or selling a security. This helps protect miners and stakers from certain regulatory burdens.

The Satoshi Action Fund, a crypto advocacy group, praised the bill. They highlighted that it protects the “right to self-custody, run a node, and use of digital assets” without “fear of discrimination.”

We are proud to officially announce that ‘Bitcoin Rights’ has been SIGNED INTO LAW by the Governor of Kentucky!

The right to self-custody, run a node, and use of digital assets is now protected for millions of Americans without fear of discrimination.

This effort would not… pic.twitter.com/ETH2I4CWw6

— Satoshi Action Fund (@SatoshiActFund) March 24, 2025

Kentucky’s legislation mirrors similar laws already in place in other states. Oklahoma passed comparable legislation that was signed into law by Governor Kevin Stitt in May 2024.

The State Bitcoin Reserve Race Heats Up

Beyond protecting user rights, Kentucky is also exploring the creation of a Bitcoin reserve. A separate bill would allow the State Investment Commission to put up to 10% of excess state reserves into digital assets, including Bitcoin.

That Bitcoin reserve bill is still under review. If passed, it would join several other states considering or implementing state-level Bitcoin reserves.

Oklahoma is also moving forward with its own Bitcoin reserve legislation. The state’s House Bill 1203, known as the Strategic Bitcoin Reserve Act, recently passed the State House of Representatives with a vote of 77 to 15.

The Oklahoma bill was introduced by state Representative Cody Maynard on January 15. It passed the Government Oversight Committee with a 12-2 vote on February 25.

For the Oklahoma bill to become law, it must now pass through the Senate. After that, the Oklahoma governor would need to sign it into law.

Oklahoma has other crypto-friendly legislation in the works as well. State Senator Dusty Deevers filed a bill on January 8 that would allow residents to receive their salaries in Bitcoin.

According to Bitcoin Laws, a group that tracks Bitcoin legislation, Oklahoma has now moved into a tie for second place with Texas in what they call the “State Bitcoin reserve race.” Arizona is currently in the lead.

Arizona’s own efforts to create a Bitcoin reserve are advancing. Two strategic digital asset reserve bills cleared Arizona’s House Rules Committee on March 24.

These Arizona bills have now moved to the House floor for a full vote. This puts Arizona at the forefront of states looking to hold Bitcoin as a reserve asset.

Missouri is also evaluating a Bitcoin reserve bill. Their Special Committee on Intergovernmental Affairs is currently reviewing the proposed legislation.

Bitcoin Laws notes that the Oklahoma bill “has a good chance to pass into law.” They point to the Republican majority in the Oklahoma Senate and the Republican governor as factors that could help the bill succeed.

The movement toward state-level Bitcoin adoption shows growing acceptance of cryptocurrency. These legislative actions aim to provide clear rules for users and businesses in the crypto space.

As more states adopt Bitcoin-friendly legislation, it may create a competitive environment where states try to attract crypto businesses and users. This could lead to further innovations in state cryptocurrency policies.

The broad support for Kentucky’s bill, with unanimous votes in both chambers, suggests strong bipartisan interest in embracing cryptocurrency technology and protecting user rights at the state level.