H.R.148 - Keep Your Coins Act of 2025 (119th Congress)
Summary
H.R. 148, 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 key terms like "convertible virtual currency," "covered user," and "self-hosted wallet" to clarify the scope of the proposed protections.
Expected Effects
If enacted, this bill would limit the authority of federal agencies to regulate the use of virtual currencies by individuals for personal transactions. It would promote greater autonomy for individuals in managing and using their digital assets. This could lead to increased adoption of virtual currencies and the development of related technologies.
Potential Benefits
- Increased Individual Autonomy: Protects the right of individuals to use virtual currencies without undue government interference.
- Promotes Innovation: Encourages the development and adoption of new digital technologies and financial services.
- Reduced Regulatory Burden: Limits the potential for overly restrictive regulations that could stifle the growth of the virtual currency market.
- Financial Inclusion: Could provide alternative financial tools for individuals who are underserved by traditional banking systems.
- Clarity in Regulation: Provides a clear definition of terms related to virtual currency, reducing ambiguity.
Potential Disadvantages
- Potential for Illicit Activities: Reduced regulation could increase the risk of virtual currencies being used for illegal activities, such as money laundering or tax evasion.
- Consumer Protection Concerns: Less oversight could expose consumers to greater risks of fraud or loss of funds.
- Financial Stability Risks: Unregulated virtual currency markets could pose risks to the broader financial system.
- Enforcement Challenges: Difficulties in tracking and regulating cross-border virtual currency transactions.
- Unintended Consequences: The bill's broad language could lead to unintended loopholes or interpretations.
Most Disadvantaged Areas:
Constitutional Alignment
The bill aligns with constitutional principles related to individual liberty and economic freedom. By limiting government restrictions on the use of virtual currency, it supports the right of individuals to engage in economic activities without undue interference. The bill could be viewed as consistent with the spirit of the Commerce Clause (Article I, Section 8), which grants Congress the power to regulate commerce, but also implies limits on regulations that unduly restrict individual economic activity. Additionally, it could be argued that restricting individuals from using virtual currency infringes upon their right to property, which is protected by the Fifth Amendment.
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).