Kentucky's HB 380, a comprehensive 77-page bill aimed at regulating crypto ATMs, has introduced a controversial Section 33 clause. According to NS3.AI, this clause mandates hardware wallet providers to assist in resetting wallet credentials. Crypto advocates argue that this requirement contradicts the principles of non-custodial wallet design and could potentially weaken self-custody. The bill has successfully passed the Kentucky House and is currently being reviewed by the Senate.