In a move aimed at preserving the autonomy of cryptocurrency users and safeguarding their ability to self-custody digital assets, U.S. Senator Ted Budd (R-NC) has introduced the Keep Your Coins Act.

This legislative proposal, which came after last year’s FTX exchange collapse, seeks to protect individuals’ rights to conduct cryptocurrency transactions without relying on third-party intermediaries.

Senator Ted Budd’s Keep Your Coins Act

U.S. Senator Ted Budd announced on November 7 the introduction of the Keep Your Coins Act. This legislation aims to protect individuals’ rights to self-custody Bitcoin and other cryptocurrencies, effectively allowing them to conduct transactions without needing third-party intermediaries. This development comes after last year’s FTX exchange collapse, which exposed vulnerabilities in centralized custody systems.

If passed into law, the legislation would empower cryptocurrency users by allowing them to maintain custody of their digital assets in self-hosted wallets. It prohibits any federal agency from proposing rules that hinder an individual’s capacity to act as a self-custodian of digital assets.

Senator Budd emphasized the importance of this legislation, stating, “As consumers face new challenges and risks associated with the use of digital currencies, we should be empowering individuals to maintain control over their own digital assets. This approach will foster financial freedom and a more decentralized cryptocurrency ecosystem.”

Congressman Davidson’s Keep Your Coins Act

Meanwhile, in July, Representative Warren Davidson (R-OH) saw the U.S. House Committee on Financial Services pass the Keep Your Coins Act of 2023 (H.R. 4841), a bill he sponsored. Davidson’s legislation primarily focuses on preventing government agencies from imposing regulations that would require the use of third-party custodians for digital wallets.

Davidson has been vocal about his support for self-custody, stating on X: “Anyone attacking self-custody is