US Crypto Congressman Introduces ‘Keep Your Coins’ Act
The “Keep Your Coins Act”, introduced on Feb. 15 by Ohio district representative Warren Davidson, is designed to protect crypto asset holders from overreaching state action.
The bill provides users with the ability to:
“(1) use virtual currency or its equivalent for such user’s own purposes, such as to purchase real or virtual goods and services for the user’s own use; or (2) conduct transactions through a self-hosted wallet.”
The move comes in the wake of Canada’s crackdown on crowdfunding platforms and crypto donations as it tried to contain an ever-growing protest movement in the country.
Crypto Spending Protection
According to reports, the bill would ban government agencies from “restricting the use of convertible virtual currency by a person to purchase goods or services for the person’s own use, and other purposes.” It would also prevent them from prohibiting crypto users from making transactions.
Speaking to Bitcoin (BTC) Magazine, Congressman Davidson said that framework protects self-custody. Referring to the Canadian clampdown, he added:
“We shouldn’t use money as a way of controlling people. Of course if there’s criminal activity, you should go after that. But imagine if the same thing were done to a crowdfunded BLM movement. That wouldn’t be okay. It’s not okay with the Freedom Convoy, either.”
U.S. lawmakers have targeted self-hosted or private crypto wallets over the past couple of years. The Treasury Department which is overseen by Secretary Janet Yellen has revisited a controversial proposal that would enforce know-your-customer (KYC) rules on self-hosted crypto wallets.
The rule was initially proposed in 2020 by U.S. money-laundering watchdog the Financial Crimes Enforcement Network (FinCEN). If enacted, digital asset exchanges would be required to collect names, residential addresses, and other personal details, from users wanting to transfer crypto to their own private wallets.
Regulatory Crackdown Looming
There are still a few pro-crypto politicians such as Congressman Davidson fighting in the crypto corner but the overall stance appears to be one of heavy-handed regulation in the United States. The proposed ‘Keep Your Coins’ Act still needs to pass legislation to be enacted and it is likely to face stiff opposition from those that are intent on quashing the industry in its entirety.
In a related development, Congressman Josh Gotthiemer released a discussion draft of the Stablecoin Innovation and Protection Act this week to encourage clearer regulations and encourage innovation in the fintech sector.