# Kentucky SB 189: AN ACT relating to the regulation of digital asset business. Kentucky SB 189, AN ACT relating to the regulation of digital asset business., is a 2026 Regular Session Senate bill sponsored by Steve Rawlings (Republican); status signed, last action 2026-04-13 (signed by Governor (Acts Ch. 126)); PRIA reads it as touching household money (as of 2026-11-01). - Canonical: https://policyrisk.com/state-bill/KY-SB189-2026RS - As of: 2026-11-01 - Plain-text twin of the page above; the HTML and this file carry the same facts. ## Facts - Bill: Kentucky SB 189 - State: Kentucky - Session: 2026 Regular Session - Title: AN ACT relating to the regulation of digital asset business. - Status: signed - Chamber: Senate - Introduced: 2026-02-12 - Last action: 2026-04-13, signed by Governor (Acts Ch. 126) - Sponsor: Steve Rawlings (Republican) - Cosponsors: 1 - Subjects: Administrative Regulations And Proceedings, Banks And Financial Institutions, Commerce, Consumer Protection, Digital Assets, Effective Dates, Delayed, Licensing, Peace Officers And Law Enforcement, Reports Mandated, State Agencies - Touches household money: yes - Roll calls: 3 (156 yes, 7 no in all) - Economic provisions PRIA read: 28 ## Summary No summary available. ## Bill overview: provisions PRIA read - Fraud refunds for kiosk users: benefit, medium. If you were tricked into a kiosk transaction, the operator must refund all kiosk charges when you report it within 90 days to the operator and to the department, Attorney General, or law enforcement, and you provide proof such as a police report or sworn statement. If the operator or its agent defr… - Stronger bans on kiosk fraud and lies: benefit, medium. The law bans schemes to cheat or mislead people using crypto kiosks. Applicants, operators, and agents must not make false statements in filings or investigations, or fail to account for money tied to kiosk transactions. Agents also must not lie to the operator or to the state regulator. Violations… - More expungement for some felonies: benefit, low. Starting April 30, 2027, certain Class D felony kiosk offenses qualify for vacatur and expungement. You may apply five years after finishing your sentence, probation, or parole, whichever is later. You must pay the filing fee and meet the court standards under Kentucky law. - Hardware wallet sellers must warn buyers: benefit, low. Hardware wallet sellers must tell buyers how to access, back up, and restore the wallet. If the seller does not keep recovery info, the warning must say losing it likely means losing the wallet’s contents. These disclosures must appear during setup, in the product box, and on the seller’s website.… - Consumer law applies to kiosk violations: benefit, low. Starting April 30, 2027, violations by crypto kiosk operators or agents, and violations of the hardware wallet disclosure rule, count as unfair or deceptive acts under Kentucky consumer law. The Attorney General can use consumer protection powers to seek remedies and penalties for these violations. - Tough penalties and fast shutdowns: cost, high. The commissioner may deny, suspend, revoke, or restrict licenses for many violations. Civil fines are $1,000 to $5,000 per violation and can run per day; operators may also have to pay the state’s exam and legal costs, and kiosks can be seized or disabled. In emergencies, the commissioner can immed… - Strong anti-fraud rules for crypto kiosks: cost, high. Kiosk operators must verify a user’s identity before taking payment. They must copy a government ID and collect name, birth date, phone, address, and email. Operators must run blockchain tracing software and block transfers to wallets tied to overseas exchanges not open to U.S. users. They must kee… - Large bonds and net worth rules: cost, high. Kiosk operators must keep a surety bond of at least $500,000. The commissioner can raise it up to $5,000,000, and you must add the extra amount within 30 days. The bond protects claimants and covers claims for at least five years after a violation or business closure. Operators must also keep at le… - Keep detailed kiosk records in Kentucky: cost, medium. Operators and agents must keep detailed transaction and compliance records in Kentucky. Records include amounts, dates, exchange rates, names, ledgers, bank statements, AML and ID files, policies, and complaint communications. The commissioner sets how long to keep them. Records may be electronic,… - Kiosk license ends if renewal missed: cost, medium. Licensees must pay the annual fee and file the renewal report by December 31 each year. If they miss this, the license expires on January 1. Once expired, you cannot legally operate until you renew and are back in good standing. - Kiosk operators need approval to replace leaders: cost, low. Before adding or replacing a responsible person, a kiosk operator must get the commissioner’s written approval. You must file a complete, sworn application in the required format with all needed documents. The commissioner approves if you still meet all licensing rules; otherwise you get a notice l… - Approval needed before selling control: cost, low. You must give notice and get the commissioner’s written approval before any change of control of a licensed digital‑asset business. Some transfers are exempt, such as limited proxy voting, inheritances, certain court‑appointed roles, and public stock offerings, or as later allowed by rule. - Hold dollar-for-dollar reserves for kiosks: mixed, high. Operators must always hold permissible investments worth at least the total of all outstanding kiosk transactions. Value is measured under standard accounting rules. The commissioner can limit which investments qualify and may allow others by rule or order. If an operator becomes insolvent, these i… - More exams and fees for operators: mixed, medium. Holding a license means you agree to examinations and investigations, with or without prior notice. After written notice, you must pay reasonable fees to cover routine exam costs. The commissioner may accept independent CPA or other qualified audit reports and use them in examinations. - Tighter rules for kiosk agents and funds: mixed, medium. Operators must use written contracts for every agent, ban subagents, and set procedures agents must follow. Agents may act only as the contract allows and must remit funds on time, with a maximum set by the commissioner if issued. Money agents receive (minus fees) is a trust for the operator until… - How to get a kiosk license: mixed, medium. Your application must be complete, in writing under oath, include required documents, show you meet bond and net worth rules, and include a nonrefundable fee. The commissioner reviews a complete filing within 90 days (with possible extension) and may inspect your premises. If you meet all rules and… - Licensing steps, fees, and hearing rights: mixed, medium. Applications must include detailed personal, business, legal, and financial information, including a Social Security number and 10‑year histories. You must file and pay a nonrefundable fee for each Kentucky kiosk location and each agent. The commissioner will approve, conditionally approve (you hav… - Ongoing reports and change of control rules: mixed, medium. Applicants and licensees must report major events within 15 business days, like insolvency, government lawsuits, or indictments. Each year, licensees must file an annual renewal report with audited financials, locations, transaction counts and dollar totals, refund stats, and holdings as of Dec 31… - Cities may set stricter kiosk rules: mixed, medium. Beginning April 30, 2027, local governments may pass and enforce rules for kiosk businesses that do not directly conflict with state law. Local rules may be stricter than the state law. - More exams and law enforcement help: mixed, medium. The commissioner can investigate on complaint or on their own and run routine exams of books and records. The commissioner can subpoena people and records, take testimony under oath, and, where federal law allows, review anti‑money‑laundering records. The department may work with other states and f… - Confidentiality for filings and exam reports: mixed, low. Documents you give the commissioner are confidential, not public records, and do not waive legal privilege. Routine Kentucky exam reports are also confidential. The commissioner and people working under the commissioner cannot be forced to testify about these materials in civil cases. The commissio… - Banks and governments exempt from kiosk licenses: mixed, low. The United States, states and their agencies, and many banks and affiliates do not need a kiosk license. Service providers working under written agreements for those exempt entities are also exempt. Most private kiosk businesses that are not in these groups still must be licensed and follow the rul… - File through central licensing registry: mixed, low. The commissioner may require you to file applications, reports, and approvals—and pay related fees—through the State Regulatory Registry or a similar system. The commissioner can report violations and enforcement actions to that registry. The law also requires a way for licensees to challenge infor… - Key terms define who is covered: mixed, low. The law defines terms like operator, agent, user, control person, and other roles. These definitions decide who needs a license, reports, and location or agent approvals. - Yearly fee, report, and late penalty: mixed, low. By December 31 each year, you must pay a nonrefundable renewal fee and file an annual renewal report. If your license expires, you may reinstate it by February 1 by paying the annual fee, filing the report, and paying a civil penalty equal to the annual fee; reinstatement is retroactive to January… - Agency rules due by 2027: mixed, low. By January 1, 2027, the commissioner must issue all rules needed to carry out the new kiosk law. - Fair process before fines and orders: mixed, low. Before adverse actions, cease‑and‑desist orders, or penalties, the commissioner must serve an administrative complaint. You can get a hearing if you file an answer and request within 20 days, and an emergency hearing if you meet emergency filing rules. If your address is not reasonably known, servi… - Public lists and reports on kiosk licensing: mixed, low. The commissioner may publish a list of licensees and agents, and aggregate data, plus information on violations and enforcement. The commissioner may also refer apparent violations to other regulators and law enforcement. Each year, the commissioner publishes a public report with application counts… ## Sponsors and cosponsors - Sponsor: Steve Rawlings (Republican), Senate - Cosponsor: Robby Mills (Republican), Senate ## Roll call votes | Date | Chamber | Motion | Result | Yes | No | Other | | --- | --- | --- | --- | --- | --- | --- | | 2026-04-01 | House | 3rd reading, passed | pass | 81 | 7 | | | 2026-04-01 | Senate | passed | pass | 38 | 0 | | | 2026-03-02 | Senate | passed | pass | 37 | 0 | | ## Actions (33) - 2026-04-13: signed by Governor (Acts Ch. 126) - 2026-04-01: delivered to Governor - 2026-04-01: enrolled, signed by Speaker of the House (Senate) - 2026-04-01: enrolled, signed by President of the Senate (Senate) - 2026-04-01: passed 38-0 (Senate) - 2026-04-01: Senate concurred in Committee Substitute (1), Floor Amendment (2) and Committee Amendment (1-title) (Senate) - 2026-04-01: posted for passage for concurrence in House Floor Amendment (2), Committee Substitute (1) and Committee Amendment (1-title) (House) - 2026-04-01: to Rules (S) (Senate) - 2026-04-01: received in Senate (Senate) - 2026-04-01: 3rd reading, passed 81-7 with Committee Substitute (1), Floor Amendment (2) and Committee Amendment (1-title) (House) - 2026-04-01: floor amendment (2) adopted (House) - 2026-04-01: Committee Substitute (1) adopted (House) - 2026-03-31: floor amendment (3) filed to Committee Substitute (House) - 2026-03-27: posted for passage in the Regular Orders of the Day for Tuesday, March 31 2026 (House) - 2026-03-26: floor amendment (2) filed to Committee Substitute (House) - 2026-03-26: 2nd reading, to Rules (House) - 2026-03-25: floor amendment (1) filed to Committee Substitute (House) - 2026-03-25: reported favorably, 1st reading, to Calendar with Committee Substitute (1) and Committee Amendment (1-title) (House) - 2026-03-24: to Banking & Insurance (H) (House) - 2026-03-03: to Committee on Committees (H) (House) - 2026-03-03: received in House (House) - 2026-03-02: passed 37-0 with Committee Substitute (1) and Floor Amendment (2) (Senate) - 2026-03-02: floor amendment (1) withdrawn (Senate) - 2026-03-02: 3rd reading (Senate) - 2026-02-27: passed over and retained in the Orders of the Day (Senate) - 2026-02-26: posted for passage in the Regular Orders of the Day for Friday, February 27 2026 (Senate) - 2026-02-26: floor amendment (2) filed to Committee Substitute (Senate) - 2026-02-25: 2nd reading, to Rules (Senate) - 2026-02-25: floor amendment (1) filed to Committee Substitute (Senate) - 2026-02-24: reported favorably, 1st reading, to Calendar with Committee Substitute (1) (Senate) - 2026-02-20: to Banking & Insurance (S) (Senate) - 2026-02-12: to Committee on Committees (S) (Senate) - 2026-02-12: introduced in Senate (Senate) ## Bill text - Current, 2026-04-01: [PDF](https://apps.legislature.ky.gov/recorddocuments/bill/26RS/sb189/bill.pdf) - Introduced, 2026-01-29: [PDF](https://apps.legislature.ky.gov/recorddocuments/bill/26RS/sb189/orig_bill.pdf) ## Related bills - SB 197: AN ACT providing funding and establishing conditions for state government agencies and institutions, making an appropriation therefor, and declaring an emergen… (became law) - SB 133: AN ACT relating to the fiscal reporting of local entities. (signed) - HB 869: AN ACT relating to fiscal matters and declaring an emergency. (signed) - SB 324: AN ACT relating to the entertainment industry. (signed) - SB 66: AN ACT relating to the operation of a motor vehicle. (signed) - HB 826: AN ACT relating to education. (signed) ## Sources - [Current (PDF)](https://apps.legislature.ky.gov/recorddocuments/bill/26RS/sb189/bill.pdf) - [Introduced (PDF)](https://apps.legislature.ky.gov/recorddocuments/bill/26RS/sb189/orig_bill.pdf) ## Related - [SB 197: AN ACT providing funding and establishing conditions for state government agenc…](https://policyrisk.com/state-bill/KY-SB197-2026RS) - [SB 133: AN ACT relating to the fiscal reporting of local entities.](https://policyrisk.com/state-bill/KY-SB133-2026RS) - [HB 869: AN ACT relating to fiscal matters and declaring an emergency.](https://policyrisk.com/state-bill/KY-HB869-2026RS) - [SB 324: AN ACT relating to the entertainment industry.](https://policyrisk.com/state-bill/KY-SB324-2026RS) - [SB 66: AN ACT relating to the operation of a motor vehicle.](https://policyrisk.com/state-bill/KY-SB66-2026RS) - [HB 826: AN ACT relating to education.](https://policyrisk.com/state-bill/KY-HB826-2026RS) - [Kentucky bills](https://policyrisk.com/states/kentucky/bills) - [Kentucky state hub](https://policyrisk.com/states/kentucky) - [All state legislation](https://policyrisk.com/state-bills) Source: PRIA, https://policyrisk.com/state-bill/KY-SB189-2026RS (as of 2026-11-01).