In a groundbreaking development, the U.S. House Financial Services Committee has just passed the “Keep Your Coins Act of 2023,” a landmark bill advocating for the right to self-custody Bitcoin and other cryptocurrencies. The bill aims to ensure that individuals and businesses can store and manage their own digital assets securely, without unnecessary third-party involvement.
Bitcoin And Crypto Self-Custody Bill Passes
The bill’s primary objective is to prohibit Federal agencies from restricting the use of convertible virtual currency by a person for their own purposes, such as purchasing goods and services, and conducting transactions for any lawful purpose. The legislation also protects the right to self-custody digital assets using a self-hosted wallet or other secure means.
Republican Warren Davidson, the representative who introduced the bill, expressed his enthusiasm for the protection of self-custody rights. He stated via Twitter, “Last night, the Financial Committee passed my bill to protect self-custody. Those attacking self-custody oppose individual freedom. They want someone they control to control your assets. Defend Freedom.”
— Jake Simmons (@realJakeSimmons) July 28, 2023
The bill defines “convertible virtual currency” as a medium of exchange with an equivalent value as currency or one that acts as a substitute for currency but may not possess all the attributes of legal tender status. It also defines a “covered user” as any person who obtains convertible virtual currency to purchase goods or services on their own behalf, regardless of how they acquired the virtual currency.
Furthermore, the bill protects the use of self-hosted wallets, which are digital interfaces used to secure and transfer convertible virtual currency. Under this legislation, the owner of convertible virtual currency retains independent control over their assets, thus ensuring maximum security and autonomy in managing their crypto holdings.
The passing of this bill is a significant step towards providing crypto investors and users with the confidence and freedom to maintain control over their digital assets. By safeguarding the right to self-custody, the U.S. House Financial Services Committee aims to foster a more robust and decentralized cryptocurrency ecosystem, where individuals can utilize their cryptocurrencies for a myriad of purposes, including purchasing goods and services.
The “Keep Your Coins Act of 2023” now advances to further stages of review and potential amendments before it can become law.
Remarkably, following the ruling in the legal battle between Ripple and the US Securities and Exchange Commission, US Bitcoin and crypto legislation has rapidly gained momentum. As Bitcoinist reported, both the broader crypto bill (Financial Innovation and Technology for the 21st Century Act, Fit21) and the stablecoin bill (Clarity for Payments Stablecoin) have passed the Financial Committee.
At press time, the Bitcoin price was at $29,328. Despite a lower than expected core PCE reading (actual: 4.1%, exp. 4.2%, last 4.6%), the BTC price remained nearly unchanged. Fifteen minutes after the release of the PCE inflation data, BTC showed only a small gain, hence the hoped-for rally failed to materialize.
Featured image from Dave Sherrill / Unsplash, chart from TradingView.com