US House Passes ‘Keep Your Coins Act’ Protecting the Right to Self Custody
In a significant move for the future of Bitcoin and cryptocurrency in the United States, the House Committee on Financial Services has approved the Keep Your Coins Act of 2023 (H.R. 4841). The legislation seeks to uphold the right to self-custody, effectively safeguarding the right of consumers to maintain complete control over their digital assets through self-hosted wallets. The move marks a pivotal step in the nation’s regulatory stance on cryptocurrencies, reflecting an increasing shift towards accepting and even accommodating the growing Bitcoin and crypto ecosystems.
What The ‘Keep Your Coins Act’ Means For Investors & Their Digital Assets
Spearheaded by Congressman Warren Davidson (R-OH), the Keep Your Coins Act is a response to what its proponents see as a threat to individual freedom. “Those attacking self-custody oppose individual freedom. They want someone they control to control your assets,” Davidson stated. A key advocate for Bitcoin and cryptocurrency in Congress, Davidson has long championed the right to self-custody, emphasizing the imperative of preserving the autonomy of cryptocurrency users.
More On The ‘Keep Your Coins Act’
The bill restricts federal agencies from interfering with individuals’ use of convertible virtual currency for personal transactions. It explicitly prohibits actions that would obstruct a person’s capacity to “self-custody digital assets using a self-hosted wallet or other means to conduct transactions for any lawful purpose.” This groundbreaking move by the U.S. House Committee on Financial Services resonates positively with enthusiasts, many of whom took to Twitter to express their gratitude.
Among those applauding the move was John E. Deaton, a well-known crypto attorney who described Davidson as “America’s NUMBER ONE protector of self-custody and a person’s fundamental right to individual financial freedom.”
The well-known adage, “Not your keys, not your coins,” underscores the importance of this act. It represents that without direct control over the private keys, or seed phrases, that secure their digital assets, consumers do not truly own (or have complete control over) those assets. Instead, they entrust them to a third-party custodian. The act serves as a legal affirmation of this principle and is a significant move towards providing legislative clarity for Bitcoin and cryptocurrency in the United States.
The approval of the Keep Your Coins Act of 2023 was not the only major event on Capitol Hill last week. The U.S. House Committee on Financial Services also passed three additional crypto-related bills: the Financial Innovation and Technology (FIT) for the 21st Century Act, the Blockchain Regulatory Certainty Act, and the Clarity for Payment Stablecoins Act. These actions indicate a more progressive regulatory approach toward the rapidly evolving digital economy.
KYC & The Future Of Digital Currencies
The passage of these bills underscores the U.S. government’s recognition of the value and potential of the cryptocurrency industry and the need to foster an environment that encourages innovation while protecting consumers. As we move further into the digital age, these moves are a testament to the increasing integration of cryptocurrency into the nation’s economic fabric. The legislation also reaffirms the importance of individual financial autonomy, a fundamental principle in the digital economy.
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