Kentucky Senate Faces Pressure Over Crypto Wallet Provision
- The Bitcoin Policy Institute has urged the Kentucky Senate to remove Section 33 of HB 380, labeling it “technologically impossible” for non-custodial wallets.
- Section 33 requires hardware wallet providers to offer a mechanism for resetting access credentials, which experts argue undermines self-custody.
- The bill passed the House with an overwhelming vote of 85-0 and is now awaiting Senate approval.
- Experts warn that if enacted, most hardware wallet providers may exit the Kentucky market rather than compromise their security models.
- The amendment was added last-minute to a broader crypto ATM regulation bill, which includes licensing and transaction limits for virtual currency kiosk operators.
The proposed amendment in Kentucky’s HB380 has sparked significant backlash due to its potential impact on hardware wallet security and consumer choice. Experts highlight that such measures could push users towards centralized custodians, increasing vulnerability to hacks.
With the bill already passed by the House, its fate now lies with the Senate as stakeholders emphasize the need for policymakers to understand self-custody’s importance in cryptocurrency security. (Source)
