Kentucky Senate Approves Bitcoin Self-Custody Rights Protection Bill

Kentucky Senate Approves Bitcoin Self-Custody Rights Protection Bill

The Kentucky legislation provides Bitcoin self-custody rights, mining protection, Securities law clarification, and license exemptions for money transmitters.

The Kentucky Senate unanimously approved a law safeguarding digital asset mining activities and Bitcoin (BTC) self-custody rights. The bill, AN ACT about blockchain technology digital assets (HB 701), passed with a 37-0 vote and will now be sent to the Governor’s desk for final approval.

The bill, backed by Representatives Adam Bowling and T.J. Roberts, grants residents the right to self-custody of digital assets via wallets they host. Furthermore, it guarantees that BTC miners can freely operate within the state, as the bill prohibits local zoning rules from discriminating against companies that mine digital assets.

The Bitcoin Self-Custody Rights Protection Bill Coverage

Besides BTC self-custody and the prohibition of discriminatory zoning laws, the law lists several vital clauses, such as:

License exemptions for money transmitters: Kentucky’s money transmission regulations do not apply to individual Bitcoin miners or companies that mine digital assets.

Securities law clarification: According to Kentucky law, digital asset mining and staking as a service are not categorized as securities.

HB 701 also establishes guidelines for staking and node operators. The bill quickly passed through the Senate after passing the Kentucky House on February 28, 2025, by a vote of 91-0.

With 37 senators voting in approval, zero voting against, and one not voting, this vote received full bipartisan support. The Governor’s signature is currently pending on the bill, which would formally incorporate digital asset mining licenses and Bitcoin self-custody safeguards into Kentucky law.

Once the governor signs, Kentucky will become one of the nation’s Bitcoin-friendly states, setting an example for other states.

Bitcoin Whales Amass 26,000 BTC

Following a brief period of stability at over $91,000, fresh selling pressure caused BTC’s price to drop to new all-time lows. According to on-chain data, its price had fallen to $87,081 by mid-Tuesday, and daily liquidations had surpassed $870 million.

Over the same period, the overall market capitalization of the cryptocurrency industry fell by 8.9% to $3.01 trillion. However, BTC whales took advantage of the price drop to increase their cryptocurrency holdings.

According to on-chain data, these large holders bought about $2.35 billion worth of BTC within hours of the decline.

ETF Withdrawals Are the Reason for Selling Pressure – Analysts

Meanwhile, Nic, a popular cryptocurrency analyst, has pointed out that ETF withdrawals have been substantial, totaling $649 million this week. He further said that additional pressure on the market is coming from macroeconomic uncertainty.

Nic suggested that delayed tariffs against Canada and Mexico may have sparked recent sell-offs. BTC’s breach of its 100-day moving average, a significant historical support level, also raised concerns.

He also predicted that Bitcoin might find support at about $71,600 based on technical indicators, aligning with the lower standard variation of the short-term holders’ (STH) cost baseline. Arthur Hayes, the former CEO of Bitmex, also offered his prediction, pointing to ETF sales as the cause and indicating more Bitcoin declines.

He said that the Bitcoin season is coming as many $IBIT investors are hedge funds that bought ETFs and sold CME futures to generate a higher yield than the short-term US Treasury securities they fund.

These funds will sell $IBIT and repurchase CME futures if this basis drops with a decline in BTC’s price. These funds will be profitable because their basis is similar to UST rates.

Hence, Hayes predicts a further drop in BTC’s price to $70,000. However, other analysts continue to be cautiously confident.

The 30-day retail demand index, which precedes price rebounds, has reverted to the neutral zone at 0%, according to CryptoQuant analyst Darkfost. Darkfost compared this index to the prior negative figure of about -21 %, which hasn’t been seen since 2021.

In the past, short-term (weeks or months) price increases have coincided with retail demand recovery. In other news, analyst Rekt Capital emphasized how crucial it is that Bitcoin recovers the $96,700 mark by the end of February.

In his opinion, a monthly close over this level would validate a rally from the bullish flag pattern and pave the way for a fresh upward trend.

Leave a Reply

Your email address will not be published. Required fields are marked *