Bill > HB701

This bill creates a comprehensive legal framework for blockchain and digital assets in Kentucky, defining key terms and establishing protections for individuals and businesses working with these technologies. The bill defines numerous technical terms like blockchain, cryptocurrency, digital assets, and nodes, and provides clear guidelines for their use. It allows individuals to accept digital assets as payment for goods and services without additional taxation, and protects their right to use digital wallets. The legislation specifically permits the operation of blockchain nodes and participation in staking (a process of validating blockchain transactions), and provides liability protections for node operators who simply validate transactions. The bill also exempts home digital asset mining, digital asset mining businesses, and node operators from money transmitter license requirements, and clarifies that staking services should not be considered as offering or selling securities. Additionally, the bill prohibits local zoning changes that would discriminate against digital asset mining businesses, effectively supporting the growth and development of blockchain-related economic activities in the state. These provisions aim to create a supportive regulatory environment for blockchain and digital asset technologies while providing clear legal definitions and protections.