KY SB32

Summary of Kentucky SB 32 (26 RS BR 1)

• Prohibits central bank digital currency (CBDC): Kentucky and its governing authorities cannot issue, accept, or participate in testing any CBDC from the Federal Reserve, U.S. government, foreign governments, or intergovernmental organizations

• Restricts foreign ownership of digital asset mining: Prohibits citizens, residents, and entities from countries subject to 22 C.F.R. sec. 126.1 (arms embargo countries) from owning interests in Kentucky digital asset mining businesses consuming over 1 megawatt hour annually; existing owners must divest within one year; violations can result in civil penalties up to $1,000,000 and property escheatment

• Authorizes state investment in bullion: Allows the State Investment Commission to invest up to 10% of excess state cash in gold, silver, platinum, or palladium bullion held through exchange traded products or qualified custodians

• Creates virtual currency kiosk (crypto ATM) licensing framework: Establishes comprehensive licensing requirements effective March 31, 2027, including $100,000 minimum surety bonds, $3,000 daily transaction limits per user, mandatory 72-hour waiting periods or cancellation rights, blockchain analytics requirements, and fraud warning notices

• Recognizes gold and silver as legal tender: Under the "Kentucky Transactional Gold and Silver Act," establishes gold and silver specie as voluntary legal tender for private debts and government payments when parties agree; requires the State Treasurer to designate a bullion depository and authorize electronic payment systems within one year