Kentucky Empowers Crypto Users with Self-Custody Law & Mining Perks

Kentucky Passes Bitcoin and Ethereum Self-Custody Law

In a significant move for cryptocurrency users, Kentucky Governor Andy Beshear has signed House Bill 701 into law, ensuring greater protections for individuals who self-custody their Bitcoin and other cryptocurrencies. This law guarantees the rights of users to hold and manage their digital assets in self-hosted wallets, granting them full control over their private keys. The legislation also clarifies that mining and staking rewards are not classified as securities, and blockchain node operations and staking are exempt from money transmitter regulations in the state.

The bill received overwhelming bipartisan support, passing the House with a 91-0 vote on February 28 and the Senate with a 37-0 vote on March 13. Additionally, Kentucky is considering House Bill 376, which proposes creating a state crypto reserve, allowing up to 10% of excess state reserves to be invested in digital assets with a market cap of $750 billion or more.

"This new law will guarantee the rights of individuals to hold and manage cryptocurrencies in their self-hosted wallets," stated Decrypt.

Key Takeaways:

House Bill 701 ensures the right to self-custody cryptocurrencies in Kentucky.
Mining and staking rewards are not classified as securities.
Blockchain operations are exempt from money transmitter regulations.

Bitcoin and Ethereum Face Worst Q1 Performance in Years

Bitcoin and Ethereum are on track to end Q1 2025 with significant losses, marking their worst first-quarter performances in years. According to CoinGlass data, Ethereum has dropped 37.98% this quarter, its steepest Q1 decline since 2018, while Bitcoin has fallen 6.49%, its worst Q1 since 2020. Analysts attribute the downturn to macroeconomic uncertainties, including tariffs imposed by U.S. President Donald Trump and concerns over federal interest rates.

Despite the current bearish trend, some experts predict a potential rally in the coming months. Crypto commentator Colin Talks Crypto suggested that Bitcoin might see its "next major blast-off" around April 30, while Swan Bitcoin CEO Cory Klippsten estimated a more than 50% chance of Bitcoin reaching all-time highs by June.

Key Takeaways:

Ethereum has dropped 37.98% in Q1 2025, while Bitcoin is down 6.49%.
Market sentiment remains cautious due to macroeconomic factors.
Analysts predict a potential rally in the coming months.

Trump Launches Stablecoin USD1 on BNB Chain and Ethereum

World Liberty Financial, a crypto project supported by U.S. President Donald Trump, has launched the stablecoin USD1 on BNB Chain and Ethereum. With a total supply exceeding $3.5 million, the token is not yet tradable but represents a significant step in the integration of blockchain technology into traditional finance. The launch coincides with the proposed GENIUS Act, which aims to regulate stablecoins in the U.S. and could influence the future of USD1.

World Liberty Financial, founded in September 2024, is reportedly controlled by President Trump and his family, who own 60% of the company’s shares. The project has raised $550 million through two public token sales, though it has faced scrutiny over potential conflicts of interest and regulatory concerns.

Key Takeaways:

USD1 stablecoin launched on BNB Chain and Ethereum with a $3.5 million supply.
The GENIUS Act could shape the regulatory landscape for stablecoins in the U.S.
World Liberty Financial is majority-owned by the Trump family.

Celo Completes Migration to Ethereum Layer 2

Celo has successfully transitioned from a standalone Layer 1 blockchain to an Ethereum Layer 2 platform, utilizing Optimism’s OP Stack and EigenDA for data availability. The migration, finalized on March 26, reduces block times from 5 seconds to 1 second and introduces native bridging with Ethereum, enhancing security and interoperability. The move brings Celo’s ecosystem of over 1,000 projects closer to Ethereum’s vast developer network.

Vitalik Buterin, co-founder of Ethereum, praised the integration, highlighting its potential to drive global crypto adoption. The transition also maintains Celo’s low transaction fees of $0.0005 and rapid processing times, ensuring a seamless user experience.

Key Takeaways: