US Senator Ted Budd Introduces Hold Your Cash Act

In a transfer geared toward preserving the autonomy of cryptocurrency customers and safeguarding their skill to self-custody digital belongings, U.S. Senator Ted Budd (R-NC) has launched the Hold Your Cash Act.

This legislative proposal, which got here after final yr’s FTX alternate collapse, seeks to guard people’ rights to conduct cryptocurrency transactions with out counting on third-party intermediaries.

Senator Ted Budd’s Hold Your Cash Act

U.S. Senator Ted Budd introduced on November 7 the introduction of the Hold Your Cash Act. This laws goals to guard people’ rights to self-custody Bitcoin and different cryptocurrencies, successfully permitting them to conduct transactions without having third-party intermediaries. This growth comes after final yr’s FTX alternate collapse, which uncovered vulnerabilities in centralized custody techniques.

If handed into regulation, the laws would empower cryptocurrency customers by permitting them to take care of custody of their digital belongings in self-hosted wallets. It prohibits any federal company from proposing guidelines that hinder a person’s capability to behave as a self-custodian of digital belongings.

Senator Budd emphasised the significance of this laws, stating, “As customers face new challenges and dangers related to the usage of digital currencies, we ought to be empowering people to take care of management over their very own digital belongings. This method will foster monetary freedom and a extra decentralized cryptocurrency ecosystem.”

Congressman Davidson’s Hold Your Cash Act

In the meantime, in July, Consultant Warren Davidson (R-OH) noticed the U.S. Home Committee on Monetary Companies move the Hold Your Cash Act of 2023 (H.R. 4841), a invoice he sponsored. Davidson’s laws primarily focuses on stopping authorities businesses from imposing laws that may require the usage of third-party custodians for digital wallets.

Davidson has been vocal about his assist for self-custody, stating on X: “Anybody attacking self-custody is telling you they oppose particular person freedom. They don’t belief you, and so they need somebody who they’ll management to regulate your belongings.”

Anybody attacking self-custody is telling you they oppose particular person freedom. They don’t belief you and so they need somebody who they’ll management to regulate your belongings.

Go my Hold Your Cash Act to guard self-custody and #DefendFreedom.

cc: @SenWarren https://t.co/jZh4WI1W1K

— Warren Davidson 🇺🇸 (@WarrenDavidson) December 14, 2022

He added, “Self-custody is the antidote to FTX’s fraud, and my Hold Your Cash Act would shield self-custody from misguided makes an attempt to limit it.”

Whereas Senator Budd’s proposal positive aspects momentum, it faces opposition. Senator Elizabeth Warren (D-MA) filed her invoice final yr, taking a special method.

Warren aimed to restrict cryptocurrency self-custody, particularly non-hosted or self-custody wallets. She sought to require platforms and networks to establish and hint transactions involving such wallets. Notably, the Monetary Crimes Enforcement Community (FinCEN) has beforehand advisable comparable laws, however they’ve but to be enacted.