Kentucky is the fifth state to allege BlockFi Interest Accounts are securities.
The mining firm will use the funding to buy 14,000 rigs – 8,000 for itself and 6,000 to sell.
The commonwealth wants to become a hub for energy-heavy businesses like crypto mining.
The bills now pass to Governor Andy Beshear for final approval.
The bill, aimed to encourage the crypto mining industry in the state, now goes to the upper house for review.
Reps. Rudy and Freeland's bill would exempt crypto miners from paying either Kentucky sales or excise tax.