In a move aimed at preserving the autonomy of cryptocurrency users and safeguarding their ability to self-custody digital assets, U.S. Senator Ted Budd (R-NC) has introduced the Keep Your Coins Act.
This legislative proposal, which came after last year’s FTX exchange collapse, seeks to protect individuals’ rights to conduct cryptocurrency transactions without relying on third-party intermediaries.
Senator Ted Budd’s Keep Your Coins Act
U.S. Senator Ted Budd announced on November 7 the introduction of the Keep Your Coins Act. This legislation aims to protect individuals’ rights to self-custody Bitcoin and other cryptocurrencies, effectively allowing them to conduct transactions without needing third-party intermediaries. This development comes after last year’s FTX exchange collapse, which exposed vulnerabilities in centralized custody systems.
If passed into law, the legislation would empower cryptocurrency users by allowing them to maintain custody of their digital assets in self-hosted wallets. It prohibits any federal agency from proposing rules that hinder an individual’s capacity to act as a self-custodian of digital assets.
Senator Budd emphasized the importance of this legislation, stating, “As consumers face new challenges and risks associated with the use of digital currencies, we should be empowering individuals to maintain control over their own digital assets. This approach will foster financial freedom and a more decentralized cryptocurrency ecosystem.”
Congressman Davidson’s Keep Your Coins Act
Meanwhile, in July, Representative Warren Davidson (R-OH) saw the U.S. House Committee on Financial Services pass the Keep Your Coins Act of 2023 (H.R. 4841), a bill he sponsored. Davidson’s legislation primarily focuses on preventing government agencies from imposing regulations that would require the use of third-party custodians for digital wallets.
Davidson has been vocal about his support for self-custody, stating on X: “Anyone attacking self-custody is telling you they oppose individual freedom. They don’t trust you, and they want someone who they can control to control your assets.”
Anyone attacking self-custody is telling you they oppose individual freedom. They don’t trust you and they want someone who they can control to control your assets.
Pass my Keep Your Coins Act to protect self-custody and #DefendFreedom.
— Warren Davidson 🇺🇸 (@WarrenDavidson) December 14, 2022
He added, “Self-custody is the antidote to FTX’s fraud, and my Keep Your Coins Act would protect self-custody from misguided attempts to restrict it.”
While Senator Budd’s proposal gains momentum, it faces opposition. Senator Elizabeth Warren (D-MA) filed her bill last year, taking a different approach.
Warren aimed to limit cryptocurrency self-custody, specifically non-hosted or self-custody wallets. She sought to require platforms and networks to identify and trace transactions involving such wallets. Notably, the Financial Crimes Enforcement Network (FinCEN) has previously recommended similar regulations, but they have yet to be enacted.