Kentucky and Oklahoma are redefineing the treatment of US cryptocurrency. The HB 701 and HB 1203, approved in 2025 and 2024, respectively, have established that the operating Bitcoin node does not correspond to being a gold sender.
In Kentucky, the law signed on March 24, 2025 releases people who run nodes of registrations based on state financial standards. Oklahoma, since last year Protect similar rights of cryptocurrency usersincluding manipulation of self-existence and related activities without undue impairment.
These measures, known as “Bitcoin Rights” by Bitcoiner’s Sato Action Fund organization, seek to position both states as leaders in the adoption of disruptive technologies, increasing innovation, reducing the burden of regulations, and more.
So, what does it mean that Bitcoin nodes are not considered transmitters in practice? The answer lies in the legislative document itself.reviewed by Cryptootics.
In Kentucky, HB 701 specifies that those who run Bitcoin nodes, validate transactions, and maintain the network do not need to adhere to standards such as Anti-Money Laundering (AML) and Customer Knowledge (KYC). This will free legal concern businesses and allow them to contribute to the Bitcoin network without facing it Requirements designed for financial institutions.
For these operational nodes, the exemption from AML and KYC requirements represents an actual change. These standards apply to banks and transfer companies. They collect data and require that transactions be monitoredwhich are not compatible with functions of nodes in decentralized networks, such as Bitcoin.
Don’t forget that Oklahoma marked this pass on HB 1203 in 2024, protecting participants on the Bitcoin network and promoting its use as a financial tool, as reported by Cryptoics.
With that rule Nodes that are classified as transmitters are also exemptpermits use in commercial transactions without additional taxes.
This approach seeks to turn these states into a technical adoption pole that respects the decentralized nature of Bitcoin. Node protection is integrated into a broader framework, ensuring that citizens are likely to use cryptocurrency without intermediaries, manipulation, or mine Bitcoin without restrictive regulations.
Technical distinctions with impact
These laws highlight important differences. Manipulating nodes, an important technical task in Bitcoin, does not mean moving money in regulatory terms. The node processes and validates transactions within the network. However, please do not protect or transfer funds directly.the distinction that Kentucky and Oklahoma perceive.
These differences in state law and federal interpretations highlight ongoing debate. Financial Crime Control Network (FinCen) considers remittances to those who provide value remittances but do not offer such explicitly classified.
Before federal ambiguity, Kentucky and Oklahoma took the initiative, Define clear rules to protect participants on the Bitcoin network.
This contrast was revealed in previous federal attempts, such as the 2021 Infrastructure Act, which attempted to classify miners and operators of nodes such as tax “blockers,” and produced criticism for the lack of accuracy, like reported encryption.
Benefits for users and developers
The Kentucky HB 701 is also useful for blockchain software developers. Those who create network tools even when promoting digital asset exchanges They are exempt from financial regulationspromotes technological innovation.
This protection extends to those who exchange cryptocurrencies for each other. This is a common practice in decentralized platforms; These activities reinforce that they are not traditional banking services.
In Oklahoma, the possibility of establishing cryptocurrency reserves and accepting them in public payments combines with the freedom to operate the node, placing states As a leader in the integration of this technology.
For Bitcoin users, these laws are practical victory. Manipulating nodes, a modest resource task, is an accessible way to support your network without legal disruptions. In Kentucky, this enhances decentralization as more nodes mean more robust and resistant networks. In Oklahoma, this combination of freedom and other rights, such as self-responsibility, strengthens citizens’ financial autonomy.
Kentucky and Oklahoma laws redefine the role of Bitcoin nodes, exclude them from financial regulations, and promote operations without restrictions. People who run nodes in Kentucky have a relief that encourages participation without fear of sanctions. With a similar approach since 2024, Oklahoma complements this protection with incentives for cryptocurrency use. Pioneering both states in Bitcoin adoption In the US.
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