A proposed bill in Kentucky, HB 380, aimed at regulating crypto ATMs, has sparked controversy due to a new provision. The provision mandates hardware wallet providers to assist users in resetting access credentials, including mnemonic phrases. Industry experts argue this conflicts with the design of non-custodial wallets and could undermine self-custody mechanisms. The bill has already passed the House and is now under Senate review, where the contentious provision may still be amended or removed.