On July 28, 2023, the US House Financial Services Committee successfully approved a significant bill safeguarding the practice of crypto self-custody. This legislation marks a significant milestone for the digital asset industry as it aims to protect the rights of individuals to personally hold their cryptocurrency in their own wallets.
Named the "Keep Your Coins Act of 2023," the bill was introduced by Republican Congressman Warren Davidson. Its primary objective is to provide investors with the freedom to retain full control over their digital assets and protect against centralization risks prevalent in the market.
The regulatory landscape surrounding cryptocurrencies in the United States has been inconsistent, with the US Securities and Exchange Commission (SEC) pursuing enforcement-first actions, resulting in lawsuits against major cryptocurrency exchanges. However, the passage of this bill represents a positive step towards empowering consumers and mitigating risks associated with centralized control.
In response to the bill's approval, Warren Davidson expressed his support in a tweet, emphasizing that those opposing self-custody are essentially against individual freedom, preferring centralized control over individuals' assets.
The Financial Services Committee highlighted the bill's relevance in addressing risks identified in the FTX Failure. By granting investors the right to retain control of their cryptocurrency, the legislation clearly prohibits Federal Agencies from limiting the use of convertible virtual currency for personal purchases and other purposes.
The passage of this bill signifies progress for the US crypto industry and complements the approval of other similar bills, such as the Clarity for Payment Stablecoins Act of 2023, which were also passed on the same day.