Keep Your Coins Act of 2025
Summary
The Keep Your Coins Act of 2025 aims to prevent federal agencies from restricting individuals' use of convertible virtual currency for personal purchases. It also protects the right of individuals to self-custody digital assets using self-hosted wallets. The bill defines 'convertible virtual currency,' 'covered user,' and 'self-hosted wallet' to clarify the scope of the protections.
Expected Effects
If enacted, this act would limit the power of federal agencies to regulate the use of virtual currencies by individuals. It would allow people to use virtual currencies for their own purchases and maintain control over their digital assets without federal interference.
Potential Benefits
- Increased Financial Freedom: Individuals gain greater control over their digital assets and how they use them.
- Reduced Regulatory Burden: Limits federal agencies' ability to restrict virtual currency use.
- Innovation: Fosters innovation in the virtual currency space by reducing regulatory uncertainty.
- Privacy: Protects the privacy of individuals using self-hosted wallets.
- Access to Goods and Services: Ensures continued access to goods and services using virtual currency.
Potential Disadvantages
- Potential for Illicit Activities: Reduced regulation could increase the risk of virtual currency being used for illegal activities.
- Reduced Consumer Protection: Less oversight may lead to reduced consumer protection against fraud and scams.
- Financial Instability: Unregulated virtual currency use could contribute to financial instability.
- Tax Evasion: Could complicate tax enforcement related to virtual currency transactions.
- National Security Risks: May hinder efforts to combat money laundering and terrorist financing.
Most Disadvantaged Areas:
Constitutional Alignment
The bill aligns with general principles of individual liberty and economic freedom, potentially drawing support from interpretations of the Commerce Clause (Article I, Section 8) and the Ninth Amendment, which protects unenumerated rights. However, the extent of federal authority over currency regulation is a complex constitutional question, and the bill's impact on national security and financial stability could raise concerns under the Necessary and Proper Clause (Article I, Section 8).
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).