The post Kentucky Eases Crypto Rules appeared on BitcoinEthereumNews.com.

Kentucky has moved to ease crypto rules after lawmakers removed a clause that lawmakers said could limit self-custody of digital assets. The new law assures that individuals can continue to hold and control their own Bitcoin without requiring the custody of a governing body. Kentucky Crypto Regulation Shift Follows Legislative Debate The legislative process, according to an X post, started with a draft bill, which contained ambiguity on matters pertaining to custody of digital assets. The initial provisions that lawmakers took into consideration were those that could require certain custodial systems to hold cryptocurrencies such as Bitcoin. Nevertheless, law professionals and blockchain enthusiasts sounded alarms at the beginning. They claimed that the wording provided a regulatory grey zone that would indirectly restrict non-custodial wallets. Consequently, the proposal sparked controversy over whether it was inconsistent with the concept of individual control over personal keys. The matter was part of a wider regulatory debate in the United States as well. This comes in addition to the move where a CLARITY Act deal on stablecoin rewards is expected this week, as Coinbase CLO Paul Grewal indicated progress toward resolving the ongoing yield debate. The SEC has historically reaffirmed custody requirements in certain cases. Meanwhile, the application of a similar logic to self-custodied Bitcoin brought about a new layer of state-level. Additionally, lawmakers in Kentucky looked at the evidence presented by the legal community, digital rights groups, and local industry  Amendment Clarifies Scope of Crypto Regulation The new bill covers the regulation of licensed digital currency businesses and not individuals. Legislators imposed regulations that were associated with anti-fraud and anti-money laundering provisions. This difference was the focus of Kentucky’s final crypto regulation. Lawmakers wanted to give clarity without limiting self-custody. As a result, the bill now breaks down commercial custodial services from individual ownership.…

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Filed under: News - @ April 3, 2026 5:20 pm