Individuals should not be prohibited from accepting digital assets as payment for services, or using digital wallet or charged extra fees for using such payment methods.
Does not prohibit imposition or collection of taxes, withholdings, assessments, charges on digital assets if such charges are made on similar transactions that use legal tender.
The operation of a node will be allowed to connect to a blockchain protocol and participate in such operations, transfer digital assets or staking on blockchain protocol.
Person operating a node(s) on a blockchain network or providing staking as a service will have no liability for a specific transaction if person only validates the transaction.
Does not apply to individual/business that develops or deploys software on blockchain protocol, exchanges digital assets, or who operates nodes on the blockchain protocol.
Additionally, any business that offers to provide staking as a service for digital assets, to any person will not be deemed to be offering or selling a security under this chapter.
Legislative History
On Feb. 19, 2025, bill introduced in House; on Feb. 28, 2025, bill passed in House.
On Mar. 4, 2025, bill delivered to Senate; on Mar. 13, 2025, bill was passed in Senate.
On Mar. 14, 2025, bill was delivered to governor, and is pending action by governor.
Effectiveness
Effective 90 days after end session, expected to end Mar. 28, 2025, effective Jun. 26.
Mar. 24, 2025 KNY LEG Governor Approval
On Mar. 24, 2025, KNY LEG reported governor signed bill into law, assigned Ch. 50.
Regulators
KNY LEG
Entity Types
B/D; Bank; Exch; MSB
Reference
Ch. 50, 3/24/2025; Bill HB701, 3/14/2025; Citation: *KNY FIN* 286.11-007, 292.340; KNY LEG 369;
