Kentucky has become the latest U.S. state to formally protect the rights of cryptocurrency users, with Governor Andy Beshear signing the so-called “Bitcoin Rights” bill into law on March 24. The legislation enshrines protections for individuals who use, store, or participate in the infrastructure of digital assets like Bitcoin.
According to a statement from crypto advocacy group Satoshi Action Fund, House Bill 701 (HB701) guarantees the right to self-custody, to run a node, and to use digital assets without fear of discrimination. The bill also prevents local governments from enacting zoning rules that would unfairly target or restrict cryptocurrency mining operations.
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
The bill was first introduced by Representative Adam Bowling on February 19, and swiftly gained overwhelming bipartisan support. It passed the Kentucky House of Representatives unanimously (91-0) on February 28, followed by a unanimous Senate vote (37-0) on March 13, before being signed into law by Governor Beshear.
Key Protections Included in Kentucky’s Bitcoin Rights Bill
HB701 outlines several key areas of protection and clarification:
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Legal right to self-custody digital assets via wallets
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Permission to run blockchain nodes without regulatory interference
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Clarification that crypto mining and staking are not securities
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Exclusion of crypto miners from money transmitter license requirements
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Ban on local zoning ordinances that discriminate against mining operations
Crypto advocates have hailed the measure as a milestone for the state’s growing digital asset ecosystem.
Kentucky Eyes State-Level Bitcoin Reserve
In addition to HB701, Kentucky has introduced a separate Bitcoin reserve bill that would allow the State Investment Commission to allocate up to 10% of surplus state funds into digital assets, including Bitcoin. The reserve bill is still under review.
If passed, Kentucky would join a growing list of states exploring Bitcoin as a treasury asset to hedge against inflation and diversify government holdings.
Other States Advance Their Own Bitcoin Reserve Bills
Kentucky’s legislative progress comes as multiple U.S. states continue to advance their own Bitcoin-focused legislation.
In Oklahoma, the State House passed HB1203, also known as the Strategic Bitcoin Reserve Act, by a vote of 77–15. The bill, introduced by Representative Cody Maynard, cleared the Government Oversight Committee in February and now awaits a Senate vote. If passed, the bill would authorize the creation of a state-managed Bitcoin reserve fund.
Oklahoma lawmakers are also pushing forward related legislation that would allow state employees to receive their salaries in Bitcoin. Given Republican control of both the state Senate and the governor’s office, crypto advocacy group Bitcoin Laws believes the bill has a strong chance of becoming law.
Big Oklahoma update:
Bitcoin Reserve Bill HB1203 passes the House, 77-15.
OK’s bill now moves into equal second place in the State Reserve Race with Texas’ SB21.
Arizona remains in the lead. https://t.co/fmo6Wt68tz pic.twitter.com/aFLMuIvwqs
— Bitcoin Laws (@Bitcoin_Laws) March 24, 2025
In Arizona, two major digital asset reserve bills passed the House Rules Committee on March 24, positioning the state as a national frontrunner in the effort to integrate Bitcoin into public finance.
Meanwhile, Missouri is in the early stages of evaluating its own Bitcoin reserve proposal through the Special Committee on Intergovernmental Affairs, according to Bitcoin Laws.
A National Movement Toward Bitcoin Integration
The rapid legislative momentum across several states signals a broader trend toward Bitcoin adoption at the state level, with policymakers increasingly viewing digital assets as tools for financial innovation, economic development, and fiscal diversification.
Kentucky’s “Bitcoin Rights” bill marks a significant step in securing individual freedoms related to digital asset use, while the reserve initiatives suggest that Bitcoin is gaining traction not just as an investment asset—but as part of state-level treasury strategy.
With more states lining up legislation, 2025 may prove to be a defining year in the mainstream integration of Bitcoin into U.S. state governments.
