Kentucky lawmakers have approved HB 701, a bill that aims to strengthen Bitcoin self-custody rights and create a friendly environment for crypto mining operations across the state.

The bill, introduced by Representatives Adam Bowling and T.J. Roberts, gained unanimous approval from both legislative chambers on March 14.

Kentucky’s Push Pro-Bitcoin Policies

HB 701 strengthens individual rights by clearly allowing the self-custody of digital assets like Bitcoin through privately controlled wallets. It also safeguards Bitcoin mining operations by preventing discriminatory zoning regulations that could unfairly target miners.

Additionally, it removes certain financial licensing requirements for small-scale miners, lowering entry barriers for independent participants in the industry.

Kentucky’s Senate Majority highlighted these protections on X (formerly Twitter), stating that the bill shields node operators and staking providers from liability for validated transactions.

It also ensures that digital asset mining and staking activities remain exempt from money transmitter and securities regulations. The Attorney General’s Office has the authority to enforce these exemptions.

“[The bill] shields node operators and staking providers from liability for validated transactions and exempts digital asset mining and staking from money transmitter and securities regulations. The Attorney General’s Office is authorized to enforce violations,” Kentucky’s Senate Majority explained on X.

Meanwhile, a significant provision of the bill clarifies that Bitcoin mining and staking services will not be classified as securities. This distinction provides greater regulatory certainty for industry participants.

Beyond mining and self-custody, the HB 701 bill safeguards individuals’ rights to use digital assets for payments. It prohibits additional taxes or fees on digital asset transactions beyond those imposed on standard financial payments.

Overall, this provision aims to enhance Bitcoin’s utility as a medium of exchange within the state.

“Digital assets used as a method of payment shall not be subject to additional taxes, withholdings, assessments, or charges that are based solely on the use of the digital asset as the method of payment,” the bill stated.

With approval from both houses, the bill now awaits the governor’s signature. If signed into law, it will reinforce Kentucky’s reputation as a crypto-friendly state and encourage further innovation in the digital asset sector.

Meanwhile, HB 701’s passage comes as lawmakers consider a separate bill to establish a Bitcoin reserve. This initiative would allocate a portion of Kentucky’s excess funds to digital assets, providing the state with an alternative store of value.

Although the bill does not explicitly mention Bitcoin, it references digital assets—excluding stablecoins—with a market capitalization exceeding $750 billion. Bitcoin’s market capitalization is currently at $1.7 trillion, making it the only asset meeting these criteria.

Despite this proposal remaining under review, Kentucky’s proactive approach places it among states pushing for greater Bitcoin adoption.

French Central Bank Governor François Villeroy de Galhau sounded the alarm on US President Donald Trump’s support for crypto. He warned that his policies could sow the seeds of the next global financial crisis.

Trump’s pro-crypto stance started in the run-up to the presidential election in November 2024. The policies he declared in his manifesto for the presidential bid significantly contributed to his reelection as digital asset proponents sought to ouster the anti-crypto regime.

France’s Villeroy de Galhau Calls Out Trump

In an interview with local French media, Villeroy de Galhau expressed concerns that the US administration’s push for crypto-assets and non-bank finance could lead to severe economic disruptions.

“Financial crises often originate in the United States and spread to the rest of the world. By encouraging crypto-assets and non-bank finance, the American administration is sowing the seeds of future upheavals,” he stated.

This criticism follows Trump’s recent executive order to create a Strategic Bitcoin Reserve and a separate stockpile of digital assets. The move and his broader pro-crypto stance have been controversial among financial experts, who fear it could destabilize global markets.

Specifically, de Galhau’s warning comes after a significant market downturn triggered by Trump’s executive order. Last week, Bitcoin crashed below $85,000, leading to $250 million in liquidations across the crypto market. The sudden sell-off highlighted the inherent volatility of digital assets and raised fresh concerns about the risks of government-backed crypto investments.

Furthermore, Trump is reportedly planning an executive order to overturn Operation Choke Point 2.0, a regulatory policy restricting crypto firms’ banking access. By reversing this policy, Trump aims to further integrate crypto into the traditional financial (TradFi) system. However, critics argue this could expose banks and investors to unprecedented risks.

Among the renowned personalities against Trump’s pro-crypto rhetoric is Peter Schiff, a well-known Bitcoin skeptic. He harshly criticized Trump’s Strategic Bitcoin Reserve, calling it “the biggest crypto rug pull of all time.” Schiff argues that the policy could lead to market manipulation and loss of public funds. He also warned that it may be designed to benefit insiders at the expense of regular investors.

Adding to these concerns, a recent poll found that most US voters oppose Trump’s push for a national Bitcoin reserve. Many Americans worry that taxpayer money could be wasted on a highly volatile asset, especially given Bitcoin’s recent market instability.

Europe to Push for Stability

Meanwhile, de Galhau emphasized that Europe must be more cautious and strengthen its financial safeguards to avoid fallout from US policies. Beyond the new tariffs on Canada, a key concern for France is the 25% imposed against the European Union.

“We have made a decision and we’ll be announcing it very soon. It’ll be 25% generally speaking, and that will be on cars and all other things,” Trump said in a recent Cabinet meeting.

Against this backdrop, de Galhau reiterated the importance of enhancing the euro’s global role. Specifically, he calls on the country to establish a strong savings and investment union to attract international investors.

“Donald Trump seems to harbor this false vision that the global economy is a zero-sum game… He sees it like a Monopoly board; with a fixation on trade deficits… We must not respond to this brutality with passivity or inevitability, but with will…we undoubtedly need to establish a balance of power to put ourselves in a position to negotiate. …let us not miss this opportunity to awaken and strengthen Europe,” he added.

As Trump’s pro-crypto policies continue to reshape the financial sector, global leaders remain divided on the potential consequences. With market volatility on the rise and regulatory uncertainty growing, the debate over the future of cryptocurrency in national economies is far from settled.

This week, the crypto market will be watching multiple global macroeconomic events. Each event has significant implications for traditional markets and, by extension, risk assets like crypto.

The following developments will shape economic narratives and influence crypto investor sentiment this week.

US Retail Sales: A Pulse on Consumer Spending

Kicking off the week, US retail sales data is due, offering a critical snapshot of consumer spending trends in the US. Economists are eager to see if January’s unexpected drop—linked to concerns over Trump’s tariffs and cautious consumer behavior—persists into February.

Strong retail figures could signal economic resilience, potentially boosting the US dollar. However, this outcome could pressure crypto prices downward as investors favor traditional assets.

Conversely, weaker-than-expected numbers might fuel speculation of Federal Reserve (Fed) rate cuts, often a boon for Bitcoin (BTC) and crypto in general.

“I imagine retail sales will be terrible considering the recent headlines from last week. Perhaps that’s already baked-in like consumer sentiment was on Friday,” one user expressed.

FOMC Meeting and Powell’s Speech: The Fed’s Next Move

The Federal Open Market Committee (FOMC) convenes on March 18-19, and Fed Chair Jerome Powell’s post-meeting speech is drawing intense scrutiny. After holding rates steady at 4.25%- 4.5% in January, the Fed’s cautious stance on inflation and labor market strength has markets guessing.

Recent remarks from Powell suggest no rush to cut rates, but softening consumer spending and tariff uncertainties could shift the tone. Crypto traders are on edge, as a hawkish outlook might strengthen the dollar, pressuring digital assets, while dovish hints could spark a rally.

“If Powell’s tone softens,liquidity algorithms won’t wait for confirmation; they’ll front-run the pivot, bidding Bitcoin higher before the echoes fade,” one user quipped.

Bank of Japan Interest Rate Decision: A Yen Pivot?

Across the Pacific, the Bank of Japan (BOJ) is set to announce its interest rate decision on Wednesday. It marks a pivotal moment after years of ultra-loose policy. Speculation is rife that the BOJ might raise rates, bolstered by Japan’s third consecutive quarter of GDP growth.

 “Brace for more Bank of Japan rate hikes: Average monthly wages in Japan rose by 3.1% year-over-year, the fastest rate in 32 YEARS. In line with surging inflation, this gives a green light for BoJ to hike in May. The BoJ has already hiked rates 3 times from -0.10% to 0.50%. This could BLOW OUT financial markets if it goes wrong: Will central banks print out the way out of the next CRISIS again? This is absolutely key to watch, ” Global Markets Investor, a popular account on X, remarked.

A stronger yen could dampen crypto enthusiasm in Asia, a key market, as investors shift toward safer assets. However, if the BOJ holds steady, it might signal prolonged liquidity, potentially lifting crypto valuations.

Initial Jobless Claims: Labor Market Clues

On Thursday, US initial jobless claims will provide a real-time gauge of labor market health. After hitting expectations at 220,000 in the week ending March 8, any uptick, perhaps toward the median forecast of 222,000, could reignite concerns about an economic slowdown.

This could nudge the Fed toward easing measures—a scenario that crypto bulls often cheer. However, stable or declining claims might reinforce the Fed’s patience, keeping pressure on risk assets like Bitcoin.

Bank of England Interest Rate Decision: Sterling’s Fate

The Bank of England (BOE) will unveil its rate decision on Thursday, rounding out the week for macroeconomic events with crypto implications. With UK inflation stubbornly above target, expectations lean toward maintaining current rates. Of note, however, is that a surprise cut is not off the table amid tariff-related growth worries.

A steady pound could stabilize crypto markets in Europe, while a weaker sterling might spur speculative buying.

These events collectively reflect the intricate dance between macroeconomic data and Bitcoin and crypto markets. Bitcoin, hovering below the $84,000 range, and altcoins like Ethereum are particularly sensitive to dollar strength and risk sentiment.

Global investors, particularly crypto traders, will be watching closely this week, ready to react to every twist and turn in this high-stakes economic data.