Kentucky Senate Urged to Strip Hardware Wallet Provision From Crypto Bill
By Vismaya V
Published on March 20, 2026.
A last-minute amendment requiring hardware wallet providers to help reset user credentials in Kentucky's crypto ATM bill has been met with backlash, with experts suggesting it is a misunderstanding of how crypto infrastructure works. The section 33 of House Bill 380 would require hardware wallet companies to provide customers with a mechanism to reset any password, pin, seed phrase, or other similar information needed to access a wallet. Critics argue that this is technically impossible for non-custodial wallets and could lead to reduced consumer choice and reduced privacy protections. The bill, which also regulates virtual currency kiosk operators and sets transaction limits, disclosures, and refund rules, is expected to move quickly through the Senate.
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