KY HB825

Amends KRS 369.130 to expand and clarify definitions related to blockchain technology and digital assets in Kentucky law

Defines "digital asset" to include virtual currency, cryptocurrency, and natively electronic assets such as stablecoins, fungible tokens, and nonfungible tokens that confer economic, proprietary, or access rights

Establishes legal definitions for wallet types including hardware wallets, self-hosted wallets, and third-party wallets, specifying requirements for private key storage and owner control

Defines "staking" as committing digital assets to validate transactions and secure blockchain networks, and "staking as a service" as providing technical staking services on behalf of asset owners

Clarifies that blockchain protocol nodes do not exercise discretion over end-user transactions, potentially limiting regulatory liability for node operators