The recent approval of the self-custody bill marked another successful passage in a series of crypto-related bills in the past week.
The bill aims to safeguard crypto users’ ability to retain custody of their digital assets. The committee recognized that the bill would address a significant concern, which surfaced after the FTX collapse.
The phrase “Not your keys, not your coins” is commonly used in crypto circles to stress the significance of self-custody. It emphasizes that users should store their funds in non-custodial wallets to ensure ownership instead of relying on third-party custodians.
In a significant development, the U.S. House Financial Services Committee recently approved the “Keep Your Coins Act of 2023” legislation. This crucial bill aims to protect crypto users‘ right to maintain custody of their digital assets in self-hosted wallets.
A stride towards financial freedom
The bill was introduced by Republican representative Warren Davidson, who announced the legal clearance on Twitter. In advocating financial freedom, he expressed that those opposing self-custody are against individual autonomy, preferring controlled custodianship over personal assets.
The legislation additionally aimed to empower individuals to utilize their digital assets for personal purposes, such as buying goods and services, without unwarranted intervention from federal agencies.
The Financial Services Committee recognized that the bill would tackle a significant concern that arose after the FTX exchange collapse last year. Many users faced difficulties accessing their funds on the failed exchange, resulting in their money being inaccessible.
Since then, self-custody has become more widely acknowledged. Recent crackdowns on Binance and Coinbase have prompted users to withdraw their funds from centralized entities, emphasizing the importance of retaining control over one’s assets.
Increased regulatory clarity
The House Committee’s approval was the latest in a series of crypto-related bills progressing through the United States legislative process in the past week. Notably, the Financial Innovation and Technology for the 21st Century Act and the Clarity for Payments Stablecoin legislation achieved historic passage.
These laws marked a positive shift from the United States’ previously inconsistent regulatory approach to the cryptocurrency market, often referred to as “regulation by enforcement” over the years.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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