US Rep Introduces Bill to Protect Crypto Wallets

Cryptocurrency regulations

A member of the Blockchain Caucus on Capitol Hill has introduced legislation to prohibit regulators from limiting the personal use of convertible virtual currency to purchase goods or services, reported. 

The “Keep Your Coins Act,” sponsored by U.S. Rep. Warren Davidson, R-Ohio, would also prevent agencies from restricting transactions through a self-hosted wallet. 

In an interview with Bitcoin Magazine, Davidson said his office began working on the measure after it became clear U.S. Treasury Secretary Janet Yellen would restrict cryptocurrency. 

Yellen has told regulators it is critical that the government establish and adopt a framework for digital currency stablecoins. The proposals were crafted to fix regulatory holes that surround the cryptocurrency. 

Read more: US Treasury’s Janet Yellen Presses for Stablecoin Regulations 

Under the Trump administration in 2020, the Treasury proposed a rule that would require crypto platforms to collect the personal data of users, including names and home addresses, who intend to transfer their cryptocurrency into a private wallet. The so-called unhosted crypto wallet rule originated with former Treasury Secretary Steven Mnuchin. 

Yellen has met with the President’s Working Group as regulatory watchdogs in the financial sector discuss the industry. The meetings have focused on the importance of eCurrency rules for stablecoins, which are fixed in valuation to traditional money such as the U.S. dollar. 

Stablecoins are expected to become mainstream for consumer and corporate payments, Circle CEO Jeremy Allaire told PYMNTS last January.

See also: New Regulations Could Push US Dollar Stablecoins Into The Payments Mainstream

Stablecoins, for now, are focused around B2B and B2B cross-border payments, Allaire said, but their use is expected to expand as time goes on.