[Kentucky Crypto ATM Bill May Implicitly Ban Self-Custody Hardware Wallets, Sparking Industry Criticism] Odaily Planet Daily News: A bill in Kentucky aimed at regulating crypto ATMs (HB380) has sparked industry controversy due to newly added provisions related to hardware wallets. Critics argue that the regulation may "implicitly ban self-custody." The bill originally focused on virtual currency kiosk operators, covering licensing, compliance requirements, transaction limits, and user protection. However, in the latest revision, new provisions require hardware wallet providers to "offer mechanisms and assist users in resetting access credentials," including passwords, PIN codes, and mnemonic phrases. Industry experts point out that this requirement conflicts with the core design of non-custodial wallets. Since private keys and mnemonic phrases are solely controlled by users, wallet manufacturers cannot access or recover this information, making the provision technically unfeasible. Institutions such as the Bitcoin Policy Institute have stated that such regulations essentially create a "backdoor" for wallets, undermining the security of crypto assets and potentially forcing users to shift toward centralized custodial services. The bill still needs to pass the state Senate for review, and the relevant provisions may still be modified or removed.