Kentucky House Bill 380, passed 85 to 0 by the state House on March 13 and now under Senate review, contains a late floor amendment in Section 33 that critics led by the Bitcoin Policy Institute say would effectively ban self-custody hardware wallets by requiring manufacturers to provide reset mechanisms they are architecturally incapable of building. What Section 33 Actually Requires The provision requires hardware wallet providers to offer a mechanism that allows users to reset their passwords, PINs, or seed phrases, and to verify a user’s identity before assisting with such a reset. Those two requirements appear straightforward in a traditional software context. In the context of non-custodial hardware wallets, they are technically impossible to fulfill without fundamentally redesigning how the devices work