The lawmakers of Kentucky state approved a bill to maintain the right of citizens for Bitcoin self-custody and protect Bitcoin mining operations.
Summary
- Kentucky lawmakers passed the HB 701 bill.
- Bill aimed to protect the right of self-custody of Bitcoin & easy entry for Bitcoin miners.
- Cardano founder opposes SEC’s past enforcement actions.
Kentucky is a crypto-friendly American state. This state is averagely popular in the crypto space for attracting Bitcoin mining operations, thanks to the availability of cheap electricity and tax incentives. In 2021, the state passed a new law to offer a tax break for Bitcoin mining companies, which ultimately made this state one of the top crypto mining hubs in the U.S. Because of friendly rules & laws, the state remains a key player in the U.S. Bitcoin mining industry.
On 17 March 2025, Kentucky lawmakers approved HB 701, a bill to secure self-Bitcoin custody rights, protect mining operations, and reinforce the state’s pro-crypto measures.
This bill is now waiting for the final approval by the governor. If the state Governor signs it then it will not only bring a friendly environment for the crypto sector but also will boost the inflow of new crypto companies in the state.
It is worth it to know that HB 701 bill representatives are Adam Bowling and T.J. Roberts. With the bill, Bowling & Roberts aimed to stop the unfair restrictions on Bitcoin mining operations and also to remove the complications around licensing for small Bitcoin mining companies, making it easier to enter the industry.
The majority of the Kentucky Senate supports this bill, as the bill ensures Bitcoin node operators and crypto staking providers won’t be liable for transactions as a part of the Securities Act. In short, we can say HB 701 removed Bitcoin mining and staking subjects from the securities and money transmitter rule book, creating a business-friendly crypto environment in the state.
More interestingly HB 701 also labels cryptocurrencies as a medium of money exchange. That means two parties can exchange money-goods service to each other using crypto payment and that payment will be free from additional taxes or fees beyond those applied to standard financial transactions.
Securities Regulator’s Changing Stance
Since the date of Gary Gensler‘s departure from the United States Securities and Exchange Commission (SEC) agency, the SEC staff has been supportive of the digital assets sector.
The acting chairman of the SEC body, Mark Uyeda, appointed by US President Donald Trump, plays a vital role in pushing new rules & laws to clarify the legal nature of cryptocurrencies.
Under the leadership of Uyeda, the SEC agency shut down its enforcement actions against the crypto space, as we can see that the majority of the crypto lawsuits by the agency have been withdrawn.
This changing stance among the SEC & other financial regulatory bodies, including CFTC, is giving a better level of confidence to the crypto companies to do crypto-related business.
However, the majority of the crypto entrepreneurs are happy with the SEC’s changing stance around this innovative sector, but some people are totally against the SEC body, as the crypto projects & companies were harassed by the regulatory body badly.
In particular, recently, Cardano founder Charles Hoskinson shared his opinion on this matter & said that the SEC’s action badly impacted the crypto space financially, as every project spent millions of dollars to pay legal fees to protect against SEC’s enforcement actions.
Read also: Elon Musk’s Attempt to Boost Dogecoin (DOGE) on Patrick’s Day Fails
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