'Keep Your Coins Act' Introduced in US Senate to Encourage Crypto Self-Custody
By: Eliza Bennet
With the aim of promoting financial freedom and decentralization in the crypto space, the 'Keep Your Coins Act' has been introduced to the U.S. Senate by Senator Ted Budd. This new piece of legislation seeks to enable individuals to maintain full control over their digital assets such as Bitcoin without the need for third-party intermediaries like exchanges. The Act re-emphasizes the critical importance of personal custody of digital assets in the wake of the noteworthy FTX collapse, which called attention to the risks involved with leaving funds on centralized platforms. If the 'Keep Your Coins Act' is passed, federal agencies would be prohibited from implementing rules that go against self-hosted wallets. The Senate bill resonates with earlier efforts in the House, where a similar bill was introduced by Rep. Warren Davidson in 2022. Both the House and Senate proposals emphasize the need for a more decentralized crypto ecosystem, one in which users maintain direct control over their assets, thereby minimizing third-party risks and preserving financial freedoms.