In a bid to fortify the rights of American citizens to self-custody their digital assets, U.S. Senator Ted Budd has unveiled a bill titled the “Keep Your Coins Act.” The legislation aims to shield individuals utilizing Bitcoin and other cryptocurrencies from undue restrictions imposed by federal agencies, fostering an environment where users can engage in peer-to-peer transactions without relying on third-party intermediaries.
Empowering Crypto Enthusiasts
The bill explicitly outlines its purpose: “To prohibit Federal agencies from restricting the use of convertible virtual currency by a person to purchase goods or services for the person’s own use, and for other purposes.” This marks a significant step in acknowledging the growing role of cryptocurrencies in everyday transactions.
The core provisions of the Keep Your Coins Act dictate that no agency head shall have the authority to prohibit or limit a covered user’s ability to use virtual currency for personal transactions, including the purchase of real or virtual goods and services. Furthermore, the bill extends protection to those who conduct transactions through a self-hosted wallet, ensuring that individuals retain control over their cryptocurrency without interference.
The bill defines “convertible virtual currencies” as mediums of exchange with an equivalent value as currency or those that act as substitutes for currency, albeit lacking some attributes such as legal tender status. A “covered user” is identified as an individual obtaining convertible virtual currency for personal transactions, regardless of the method employed to acquire such assets.
Crucially, the legislation introduces the term “self-hosted wallet,” describing it as an interface used for securing and transferring convertible virtual currency. This interface grants the owner independent control over their digital assets, reinforcing the principle of self-custody in the realm of cryptocurrency.
Senator Budd’s Keep Your Coins Act reflects a growing awareness among lawmakers about the importance of safeguarding individual rights in the evolving landscape of digital finance. If passed, the bill could pave the way for a more secure and user-centric approach to cryptocurrency transactions, empowering citizens to manage their digital assets independently.
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