- Self-custody and tax-free payments now protected in Kentucky
- Bitcoin miners shielded from unfair zoning laws
- Nodes exempted from money transmitter regulations
Kentucky has made a bold move in supporting digital asset adoption. The state has officially signed House Bill 701—known as the Bitcoin Rights bill—into law. This forward-thinking legislation protects the rights of individuals and businesses engaging with Bitcoin and other digital assets in the state.
With this new law, Kentucky joins a growing list of crypto-friendly jurisdictions aiming to foster innovation, investment, and financial independence.
Self-Custody and Digital Payments Get a Boost
A core feature of the Kentucky Bitcoin Rights bill is the protection of self-custody. Residents can now legally hold and manage their own Bitcoin and digital assets without third-party interference—aligning with the fundamental ethos of crypto.
Additionally, the bill ensures that using digital assets for payments will not trigger additional taxes. This change promotes practical, everyday crypto use, encouraging merchants and consumers to transact in Bitcoin without fear of double taxation.
Mining and Nodes Now Better Protected
The legislation also provides solid backing for Bitcoin miners. It blocks local authorities from enforcing discriminatory zoning laws, allowing mining operations to function freely across the state. This could drive new business and infrastructure investment into Kentucky.
In another forward-looking move, the bill exempts node operators from money transmitter rules. Running a Bitcoin node will no longer require a license, protecting individuals who contribute to the network’s decentralization.
A Signal to Other States
Kentucky’s adoption of the Bitcoin Rights bill sets a new standard for state-level crypto legislation. As digital assets become more integrated into mainstream finance, other states may look to Kentucky as a blueprint for future policy.
