Overview
- The Bitcoin Policy Institute said it is urging the Senate to remove Section 33, arguing the requirement is technologically impossible for non-custodial wallets and would erode self-custody.
- Section 33 was inserted as a last-minute House floor amendment before HB 380 passed 85-0 and advanced to the Senate.
- BitAML’s Joe Ciccolo warned manufacturers would likely quit the Kentucky market rather than redesign devices, reducing consumer choice and privacy protections.
- The broader bill targets virtual currency kiosks by imposing licensing, transaction limits, disclosures, and refund rules that have drawn bipartisan support.
- The provision also outlines identity checks for reset requests, while critics propose non-centralized recovery options such as social recovery or multisignature setups.