YEREVAN (CoinChapter.com) — Kentucky has introduced KY HB376, a bill allowing the State Investment Commission to allocate up to 10% of excess state reserves into Bitcoin (BTC) and other eligible digital assets. State Representative Theodore Joseph Roberts proposed the bill on Feb. 6.
Kentucky House Bill 376 Summary. Source: LegiScanThe bill specifies that digital assets must have a market capitalization of over $750 billion averaged over the previous year. Currently, Bitcoin, valued at $1.9 trillion, is the only cryptocurrency that qualifies. Ethereum (ETH), with a $330 billion market cap, remains below the threshold.
The legislation does not name specific cryptocurrencies but excludes stablecoins from eligibility. The bill states:
“The total amount of excess cash invested under subsection (9)(k), (l), and (m) of this section shall not, at the time of the investment is made, exceed ten percent (10%) of the total amount of excess cash invested under subsection (9) of this section.”
More US States Are Pushing for Bitcoin Reserves
Kentucky joins 15 other states considering Bitcoin reserve policies, including Arizona, Alabama, Florida, Massachusetts, Missouri, New Hampshire, North Dakota, South Dakota, Ohio, Oklahoma, Pennsylvania, Texas, Utah, Kansas, and Wyoming.
US States Supporting Bitcoin Reserves. Source: BitcoinLawsSeveral states are looking into Bitcoin reserves as part of broader discussions on state-level digital asset adoption.
Bitcoin Reserve Bill Could Bring Federal-Level Scrutiny
As more states move forward with Bitcoin reserves, regulatory agencies may need to classify Bitcoin’s status in state-held public reserves.
Anndy Lian, a blockchain policy expert, commented on the matter:
“If Kentucky moves forward, it creates a roadmap for others to follow.”
Lian noted that the SEC, Federal Reserve, and Congress will need to address Bitcoin’s classification in state-controlled reserves:
“The SEC, the Fed, and even Congress will have to grapple with how to classify Bitcoin in public reserves — is it a commodity? A security? Something entirely new? This could accelerate regulatory clarity, but it also risks creating a patchwork of state-level rules that complicate national policy.”
Bitcoin Volatility and Security Concerns Remain a Factor
Bitcoin’s price volatility remains a consideration in state-level reserve plans. Lian pointed out that taxpayer funds could be at risk if Bitcoin’s price declines:
“Let’s not forget the consumer protection angle: if Bitcoin’s volatility tanks, taxpayers could be on the hook, which raises serious governance questions.”
States considering Bitcoin reserves must also implement secure custody solutions, cybersecurity protections, and clear financial safeguards.
Illinois Introduces a Bitcoin Reserve Strategy
Kentucky’s proposal follows Illinois, which recently announced plans for a Bitcoin reserve bill. The Illinois bill suggests a five-year minimum BTC holding strategy.
With more states considering Bitcoin in government reserves, discussions on regulatory oversight, risk management, and state-level crypto adoption are gaining attention.
The post Kentucky Introduces Bitcoin Reserve Bill as More US States Consider Crypto Holdings first appeared on Coinchapter.
The post Kentucky Introduces Bitcoin Reserve Bill as More US States Consider Crypto Holdings appeared first on Coinchapter.
