Self-custody of cryptocurrencies is an antidote to FTX fraud: the “Keep Your Coins Act” will protect self-hosted wallets – Bitcoin News Regulatory

US Congressman Warren Davidson has touted self-custody of cryptocurrencies as an antidote to cryptocurrency exchange FTX fraud. He is pushing for his own bill called the “Keep Your Coins Act,” which aims to “protect self-custody from misguided attempts to limit it.”

The US legislator pushes for self-custody

Congressman Warren Davidson (R-Ohio) has touted self-custody of cryptocurrencies following the collapse of cryptocurrency exchange FTX. On Wednesday he tweeted:

Self-custody is FTX’s antidote to fraud, and my Keep Your Coins Act would protect self-custody from botched attempts to curb it.

“Anyone who attacks self-custody is telling you that they oppose individual freedom,” the lawmaker added.

Responding to a question on Twitter about why new laws are needed if people can already self-custody today, the MP replied:

Current and former Treasury secretaries have discussed banning what they call “self-hosted wallets”: self-custody. Senator Elizabeth Warren and several other members of Congress have proposed bans. We must protect it positively to defend freedom, such as the Bill of Rights.

The Ohio congressman announced his “Keep Your Coins Act” in February. Noting that the bill aims to “preserve Americans’ right to privacy when transacting with cryptocurrencies,” the lawmaker explained at the time that “Notably, this legislation would prohibit any federal agency from enacting a rule that would compromise the ability to a person to act as a self-keeper.”

Senator Elizabeth Warren introduced a bill last week called the “Digital Asset Anti-Money Laundering Act.” According to cryptocurrency advocates, it is “the most direct attack on the personal freedom and privacy of cryptocurrency users and developers that we have ever seen.”

Last week, Davidson said he believes former FTX CEO Sam Bankman-Fried (SBF) was arrested before House and Senate hearings take place because the Securities and Exchange Commission (SEC) and other regulators” they didn’t want to give Congress the opportunity to ask SBF about their failed oversight.

One lawmaker who recently suggested that cryptocurrencies could be banned is Sen. Sherrod Brown (D-Ohio), chair of the Senate Committee on Banking, Housing and Urban Affairs. However, he acknowledged that banning cryptocurrencies “is very difficult because it will go offshore and who knows how it will work.”

Commenting on Senator Brown’s suggestion to ban cryptocurrencies, Rep. Davidson tweeted:

Ohio needs a new senator, the Senate Banking Committee needs a new chairman, and Congress needs to understand that its failure to act actively exposes consumers, investors and innovators to avoidable risk.

Senator Pat Toomey (R-PA), a ranking member of the Senate Banking Committee, agreed with Davidson. He stressed that the idea of ​​banning cryptocurrencies is “deeply misguided, not to mention impossible.” The Pennsylvania Senator stressed, “Unless draconian and authoritarian policies are implemented, cryptocurrency cannot be stopped. If we tried, the technology would simply migrate offshore.”

What do you think of Congressman Warren Davidson’s comments on self-custody of cryptocurrencies? Let us know in the comments section below.

Kevin Helms

An Austrian business student, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests are in Bitcoin security, open-source systems, network effects, and the intersection of economics and cryptography.

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