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 the right to self-custody of 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 main purpose of the bill is to prohibit federal agencies from restricting a person’s use of convertible virtual currency for their own purposes, such as purchasing goods and services, and from carrying out transactions for lawful purposes. The legislation also protects the right to self-custody of digital assets using a self-hosted wallet or other secure means.
Republican Warren Davidson, the Representative who introduced the bill, expressed enthusiasm for protecting self-custody rights. He said via Twitter: “Last night the Finance Committee passed my bill to protect self-guard. Those who attack self-guard are against individual liberty. They want someone who they control your assets. Stand up for freedom.
JUST IN: The U.S. House Financial Services Committee just passed a bill to protect the right to self-custody #Bitcoins and crypto! pic.twitter.com/0p7Wc42RAD
—Jake Simmons (@realJakeSimmons) July 28, 2023
The bill defines “convertible virtual currency” as a medium of exchange that has an equivalent value to currency or that acts as a substitute for currency but may not possess all of the attributes of legal tender status. It also defines a “covered user” as anyone who obtains convertible virtual currency to purchase goods or services in their own name, regardless of how they acquired the virtual currency.
Additionally, 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 the convertible virtual currency retains independent control over their assets, thus ensuring maximum security and autonomy in the management of their crypto assets.
The passage of this bill is an important step towards providing crypto investors and users with the confidence and freedom to maintain control of their digital assets. By preserving the right to self-custody, the US House Financial Services Committee aims to foster a more robust and decentralized cryptocurrency ecosystem, where individuals can use their cryptocurrencies at a multitude of purposes, including the purchase of goods and services.
The “Keep Your Coins Act of 2023” is now moving through further stages of review and potential amendments before becoming law.
Remarkably, following the ruling in the legal battle between Ripple and the United States Securities and Exchange Commission, US Bitcoin and crypto legislation has rapidly gained momentum. As reported by Bitcoinist, the broader crypto bill (Financial Innovation and Technology for the 21st Century Act, Fit21) and stablecoin bill (Clarity for Payments Stablecoin) have passed the Finance Committee. .
At press time, Bitcoin price was $29,328. Despite a lower-than-expected core PCE reading (actual: 4.1%, exp. 4.2%, latest 4.6%), the price of BTC remained virtually unchanged. Fifteen minutes after the release of PCE inflation data, BTC showed only a small gain, hence the hoped-for rally failed to materialize.
Featured image by Dave Sherrill / Unsplash, chart from TradingView.com