The Kentucky Senate passed a bill Thursday to protect Bitcoin self-custody and mining rights, delivering a 37-0 vote in favor of HB 701, according to a report from Bitcoin Magazine. The legislation, which now moves to the Governor’s desk, mandates that Bitcoin holders in the state have the right to self-custody their assets and prevents local governments from using zoning laws to shut down mining operations.
The bill was sponsored by Adam Bowling and T.J. Roberts and it received unanimous approval from the Kentucky House on February 28 with a 91-0 vote before it headed to the Senate. The legislation says that mining and staking services are not securities, clarifying legal concerns that have caused issues in other states.
Kentucky cements Bitcoin protections with sweeping legislation
Kentucky lawmakers have sent a clear message—Bitcoin holders have the right to self-custody their assets without interference. The bill ensures that self-hosted wallets remain legal, giving users full control over their crypto. “This is about personal financial freedom and keeping government overreach out of Bitcoin,” said Adam.
Bitcoin miners also benefit from the new law. The bill prohibits local governments from using zoning restrictions to block or hinder mining operations. This means cities and counties cannot pass laws that specifically target Bitcoin miners, something that has become an issue in other states. “We are making sure that Bitcoin miners in Kentucky can operate without being unfairly targeted,” said T.J.
Another major change is that Bitcoin miners are no longer required to get a money transmitter license. This applies to both home miners and businesses, making Kentucky one of the most mining-friendly states in the U.S. “This clears a major hurdle for Bitcoin miners and lets them operate without unnecessary regulations,” Adam added.
The bill also clarifies Kentucky’s securities laws, saying that Bitcoin mining and staking services are not securities. This prevents potential legal battles over whether staking rewards or mining income could be classified as investment contracts. With other states pushing for tighter regulations on staking and mining, Kentucky is taking a different approach—one that favors Bitcoin adoption and business-friendly policies.
After moving through the House and Senate with zero opposition, the bill now awaits the Governor’s signature. If signed into law, Kentucky will be one of the most pro-Bitcoin states in the country, setting an example for other states that haven’t clarified their stance on Bitcoin self-custody and mining rights.
Bitcoin price rebounds as markets react to economic shifts
While Kentucky lawmakers were moving forward with Bitcoin-friendly policies, Bitcoin’s price recovered from a four-month low. After dropping to $77,000 earlier this week, Bitcoin bounced back 6.2%, reaching $85,301 on Friday.
It wasn’t just Bitcoin. Solana surged 9%, Chainlink climbed 13%, and XRP jumped nearly 8% as crypto markets rebounded. The recent sell-off came after tariff announcements from President Trump and concerns over a government shutdown, which caused widespread uncertainty across global financial markets.
Bitcoin ETFs saw record outflows, and derivatives traders hedged against a possible drop to $70,000. “Crypto markets are bouncing with other risk assets as macro-driven liquidations appear to be at least taking a break today,” said Stephane Ouellette, co-founder of FRNT Financial. “We expect that further macro stability will continue to be a tailwind for crypto prices.”
Despite the recovery, Bitcoin’s price remains highly sensitive to macroeconomic trends. Trump’s recent crypto policies, including a Bitcoin strategic reserve in an executive order and the dropping of multiple lawsuits against major crypto firms, have done little to boost Bitcoin prices as investors remain focused on inflation and tariffs.
“Crypto’s recent recovery seems tied mainly to global macro factors, especially lower-than-expected inflation figures easing fears about the US economy,” said James Davies, CEO of Crypto Valley Exchange.
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