The U.S. House Financial Services Committee recently passed the landmark bill titled the “Keep Your Coins Act of 2023,” advocating for the right to self-custody Bitcoin and other cryptocurrencies. This groundbreaking legislation aims to empower individuals and businesses by ensuring the secure storage and management of their own digital assets, without unnecessary third-party involvement.

The primary objective of the bill is to prohibit Federal agencies from restricting the use of convertible virtual currency for personal purposes, such as buying goods and services, and conducting lawful transactions. Additionally, the legislation provides protection and recognition for self-custody of digital assets using a self-hosted wallet or other secure means.

Republican Representative Warren Davidson, the bill’s proponent, expressed his enthusiasm for safeguarding self-custody rights. He took to Twitter to state, “Last night, the Financial Committee passed my bill to protect self-custody. Those attacking self-custody oppose individual freedom. They want someone they control to control your assets. Defend Freedom.”

The bill explicitly defines “convertible virtual currency” as a medium of exchange that holds equivalent value as currency or acts as a currency substitute, while acknowledging that it may not possess all the attributes of legal tender status. Additionally, it defines a “covered user” as any individual who acquires convertible virtual currency to make personal purchases, regardless of how they acquired it.

Furthermore, the legislation ensures the protection of self-hosted wallets, which are digital interfaces that enable the secure storage and transfer of convertible virtual currency. By allowing owners to retain independent control over their assets, the bill guarantees maximum security and autonomy in managing their crypto holdings.

This crucial step toward protecting self-custody rights signifies a significant breakthrough for crypto investors and users. By preserving the right to self-custody, the U.S. House Financial Services Committee aims to foster a stronger and more decentralized cryptocurrency ecosystem, providing individuals with the confidence to utilize their cryptocurrencies for various purposes, including purchasing goods and services.

The “Keep Your Coins Act of 2023” will now go through further stages of review and possible amendments before potentially becoming law.

Notably, recent events such as the Ripple vs. US Securities and Exchange Commission legal battle have propelled Bitcoin and crypto legislation in the United States. Both the broader crypto bill, known as the Financial Innovation and Technology for the 21st Century Act (Fit21), and the stablecoin bill (Clarity for Payments Stablecoin) have successfully passed the Financial Committee.

At present, the Bitcoin price stands at $29,328. Despite a lower than expected core Personal Consumption Expenditures (PCE) index reading, BTC’s price remains relatively stable. Although hopes for a rally were not fully realized following the PCE inflation data release, Bitcoin continues to hold steady, reflecting the resilience of the market.

Disclaimer: The information provided in this research report is for informational purposes only and should not be interpreted as financial or investment advice. The NFT and cryptocurrency market is highly volatile, and readers should conduct thorough research before making any investment decisions.