Keep Your Coins Act of 2025
- Sponsor
- Sen. Budd, Ted [R-NC]
- Committees
- Banking, Housing, and Urban Affairs Committee (primary)
- Last action
- Jul 15, 2025
Bottom line
The bill aims to protect individual autonomy and control over digital assets and virtual currencies from federal agency interference, emphasizing personal financial freedom.
What it actually does
This bill prohibits federal agencies from restricting individuals' ability to use convertible virtual currency for personal purchases of goods or services, or to self-custody digital assets using self-hosted wallets for any lawful purpose. It defines key terms such as 'convertible virtual currency,' 'covered user,' and 'self-hosted wallet' to clarify the scope of these protections.
Proponents argue
Supporters argue that this bill is crucial for protecting financial privacy and individual liberty in the digital age, preventing government overreach into how people manage and spend their own digital assets. They contend it fosters innovation in the digital asset space by providing regulatory clarity and preventing arbitrary restrictions that could stifle technological advancement.
Opponents contend
Opponents might argue that such a prohibition could severely hinder federal agencies' ability to combat illicit finance, money laundering, and terrorist financing, as convertible virtual currencies and self-hosted wallets can be used to obscure transactions. They may also raise concerns about consumer protection if regulatory oversight is significantly limited in this rapidly evolving sector.
The bill is exceptionally short and straightforward, making it very accessible for any reader to understand its core provisions quickly.
Section 2(a)
Prohibition on Restricting Use and Self-Custody of Convertible Virtual Currency
This section explicitly prevents any federal agency from prohibiting, restricting, or otherwise impairing an individual's (referred to as a 'covered user') ability to use convertible virtual currency for their own purposes, such as purchasing goods or services. It also protects a covered user's right to hold their digital assets in a 'self-hosted wallet' or by other means to conduct transactions for any lawful purpose, ensuring personal control over digital funds.
Supporters argue
Supporters argue this provision is essential for protecting individual financial freedom and privacy in the digital age, ensuring that people can control their own assets without government interference, similar to how they control physical cash. They believe it fosters innovation by providing regulatory certainty.
Critics contend
Critics might contend that this provision could create a significant regulatory loophole, making it harder for law enforcement and financial regulators to track illicit activities, prevent money laundering, or enforce sanctions, thereby posing risks to national security and financial integrity.
Tradeoffs
The bill navigates the tension between individual liberty and financial autonomy versus potential governmental interests in financial oversight, consumer protection, and combating illicit activities. It prioritizes individual control over broad regulatory discretion.
Section 2(b)
Definitions of Convertible Virtual Currency, Covered User, and Self-Hosted Wallet
This section provides clear definitions for key terms used throughout the bill. 'Convertible virtual currency' is defined as a medium of exchange with equivalent value to or acting as a substitute for traditional currency. A 'covered user' is any person obtaining virtual currency to purchase goods or services for their own behalf. A 'self-hosted wallet' is a digital interface where the owner retains independent control over their virtual currency, ensuring clarity on what assets and methods of holding are protected.