In brief
- The Bitcoin Policy Institute urged the Kentucky Senate to remove Section 33 of HB 380, calling it “technologically impossible” for non-custodial wallets.
- The provision was buried as a floor amendment in a kiosk regulation bill that passed the House 85-0 and could clear the Senate within days.
- An expert told Decrypt that hardware wallet providers would likely exit the Kentucky market entirely rather than redesign products in ways that undermine self-custody.
A last-minute amendment requiring hardware wallet providers to help reset user credentials, tucked into Kentucky’s sweeping crypto ATM bill, is facing mounting backlash, with experts saying it is a fundamental misunderstanding of how crypto infrastructure works.
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