Congressman Warren Davidson (R-OH) has introduced new legislation to protect self-hosted crypto wallets from government agencies.
The bill, which was introduced on February 15, aims "[t]o prohibit Federal agencies from restricting the use of convertible virtual currency by a person to purchase goods or services for the person’s own use, and for other purposes."
Specifically, the bill bars agency heads from restricting the ability to "[u]se virtual currency or its equivalent for such user’s own purposes, such as to purchase real or virtual goods and services for the user’s own use; or conduct transactions through an self-hosted wallet."
Self-custody was under fire at the end of 2020 and the beginning of 2021, as the Treasury Department under then-Secretary Steven Mnuchin sought to impose limits on crypto exchanges transacting within unknown parties in the final weeks of the Trump administration. The controversial wallet monitoring rule ultimately went dormant under Janet Yellen's Treasury.
Despite the Treasury sidelining that proposal, questions linger as to requirements of certain intermediaries to identify crypto users behind transactions. As to the prospect of that proposal returning, Davidson told The Block, “I would be concerned about it returning until it’s protected.”
Davidson further elaborated on his overall support for independent operation of crypto, saying "People should run their own nodes and have self-custody over some portion of their digital assets.”
A member of the Blockchain Caucus and the author of the Token Taxonomy Act, Davidson has . Just last week, he spoke up about one especially concerning stablecoin operator facing scrutiny before Congress.
Read the full text of Davidson's bill below:
Bill.pdf by MichaelPatrickMcSweeney on Scribd