On Thursday, the Kentucky Senate unanimously approved a bill aimed at protecting citizens' rights to self-custody and mine Bitcoin. According to a report by Bitcoin Magazine, the bill now awaits the governor's signature. The legislation guarantees Bitcoin owners the right to self-custody their assets and prohibits local governments from using zoning laws to restrict mining activities.

The initiative was introduced by Senators Adam Bowling and T.J. Roberts and previously received unanimous support in the Kentucky House of Representatives on February 28 (91 votes in favor, 0 against). The bill clarifies that mining and staking services are not considered securities, eliminating legal uncertainties that have arisen in other states.

Kentucky Strengthens Bitcoin Rights

The bill explicitly enshrines citizens' rights to self-custody cryptocurrency without government interference. This means users can continue using non-custodial wallets, maintaining full control over their assets. "This is about personal financial freedom and protection from excessive government regulation," said Adam Bowling.

Bitcoin miners also benefit significantly from the new law. Local governments will no longer be able to use zoning regulations to block or restrict mining operations. This prevents the enactment of laws targeting miners, which has been an issue in other parts of the U.S. "We are ensuring fair conditions for miners in Kentucky, protecting them from unreasonable restrictions," stated T.J. Roberts.

Simplified Rules for Miners

Another key aspect of the bill is the removal of the money transmitter license requirement for miners. This applies to both individuals and companies, making Kentucky one of the most attractive states for mining in the U.S.

Additionally, the bill clarifies the state's stance on mining and staking, excluding them from the securities category. This prevents potential legal disputes over whether staking rewards or mining income can be classified as investment contracts. While other states are tightening regulations in this area, Kentucky is choosing to support innovation and create a business-friendly environment.

Next Steps

After approval by the House and Senate, the bill now awaits the governor's signature. If signed, Kentucky will become one of the most progressive states regarding Bitcoin, setting an example for other regions that have yet to define their stance on self-custody and cryptocurrency mining regulations.

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