Sen. Ted Budd (R-NC) has introduced his Keep Your Coins Act in the Senate, a bill designed to ensure individuals' rights to self-custody their crypto assets without mandatory reliance on intermediaries.
This legislation comes at a critical juncture for the cryptocurrency industry, particularly in the aftermath of last year's FTX exchange collapse. Since the crypto exchange filed for bankruptcy in November 2022, there's been increased attention from the industry on the importance of self-sovereignty in digital asset management.
"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," Budd said in a statement. "This approach will foster financial freedom and a more decentralized cryptocurrency ecosystem."
His bill already has a likely opponent: This time last year, Sen. Elizabeth Warren (D-MA) introduced her own legislation to curtail self-custody of crypto assets.
Senator Warren Introduces New Crypto Bill Targeting Self-Custody Wallets
Amid this week’s United States Senate hearings about the collapse of FTX, Senators Elizabeth Warren and Roger Marshall today introduced the Digital Asset Anti-Money Laundering Act, which targets the cryptocurrency industry with a number of proposed regulations that critics are calling authoritarian and unconstitutional. The proposed bill seeks to place know-your-customer (KYC) requirements on blockchain infrastructure providers and participants operating in the United States, including developer...
The bill targeted unhosted, or self-custody crypto wallets, requiring platforms and networks to identify such customers and track their transactions. FinCEN proposed such a rule in December 2020, which many crypto industry companies and advocates spoke out against, but it has yet to be implemented.
Budd's proposal reflects a growing sentiment in Congress regarding the autonomy of cryptocurrency users, aligning with previous initiatives by Rep. Warren Davidson (R-OH).
Davidson, who has been a proponent of the cryptocurrency industry, last year introduced a similar bill in the House. Both legislators have said they're looking to prevent federal agencies from enforcing regulations that would require the use of third-party custodians for digital wallets.
Crypto-Friendly Congressmen Draft Bill to Reform SEC, Fire Gary Gensler
Following months of attacks against the crypto industry by the U.S. Securities and Exchange Commission (SEC), two Republican congressmen have decidedly had enough of the agency’s chairman. “Today I filed the SEC Stabilization Act to restructure the SEC and fire Gary Gensler,” announced Warren Davidson (R-OH) on Twitter Monday. “U.S. capital markets must be protected from a tyrannical Chairman, including the current one.” Joining Davidson in creating the legislation is Rep. Tom Emmer (R-MN) – th...
Earlier this year, Davidson said he planned to propose legislation aimed at removing Gary Gensler, the chairman of the Securities and Exchange Commission (SEC), from his position. This move stems from Davidson's and some industry advocates' concerns about the SEC's approach to cryptocurrency regulation, which they view as an overextension of its authority.
The SEC has been actively proposing amendments to extend regulatory oversight to more brokers and redefine what constitutes an "exchange." While Gensler asserts that these changes would benefit the market and its participants, some, including SEC Commissioner Hester Peirce, have criticized them.
Hester Peirce Says SEC Crypto Custody Plan Involves 'Substantial Departure' From Status Quo
U.S. Securities and Exchange Commissioner Hester Peirce, no stranger to butting heads with her own agency, released a statement on Wednesday questioning the latest proposal from SEC Chair Gary Gensler and the SEC regarding crypto custody in the United States. My statement on today's custody proposal. Looking forward to comments from the public. This one affects crypto, among many other issues: https://t.co/1eWT6P45Ya — Hester Peirce (@HesterPeirce) February 15, 2023 Peirce, who many affection...
Peirce has expressed stark dissent, arguing that the amendments could lead to centralization and hinder technological innovation within the industry.
The securities regulator's recent enforcement actions against crypto exchanges, like Coinbase and Binance, and its stance on new technologies such as staking and stablecoins have been points of contention among lawmakers. Critics have suggested that the SEC is using enforcement as a means to establish regulatory precedents rather than providing clear guidelines for the industry.
Editor’s note: This article was written with the assistance of AI. Edited and fact-checked by Stacy Elliott.
