A cryptocurrency regulatory draft in Kentucky, known as House Bill 380, has triggered an alert from the Bitcoin Policy Institute (BPI) due to potential new requirements for hardware wallets. The bill was introduced by State Representatives Aaron Thompson and Tom Smith.
In its response to the bill, BPI pointed out that the regulations proposed are technically unachievable for non-custodial wallets. They emphasized that hardware wallets are designed precisely to prevent anyone, including the manufacturer, from accessing or recovering a user's seed phrase.
Previously, U.S. Securities and Exchange Commission (SEC) officials have publicly defended the right of individuals to self-custody their assets. One official expressed confusion, stating, "What's confusing to me is that in this country of freedom, this is even a question – of course, people can hold their own assets."