Sponsors (4)
The bill expands individual control and the ability to use noncustodial digital currency for transactions while reducing agency constraints, but does so at the cost of weaker enforcement of AML/sanctions, higher consumer security risks, and greater regulatory uncertainty for financial firms.
People who hold or use digital currencies (e.g., CVC) can make purchases and transact without federal agency-imposed limits, increasing payment options and transaction freedom for everyday users.
Individuals can self-custody digital assets and transact from self-hosted wallets without federal agency interference, protecting users' control over their private keys and transactions.
Reduces compliance burden and operational constraints on noncustodial crypto use, lowering some costs and friction for financial firms and technology providers that interact with self-custodied transactions.
Limits federal agencies' ability to enforce anti‑money‑laundering and sanctions controls on CVC transactions, potentially weakening national security and law‑enforcement oversight.
Shifts security responsibility entirely to individual users (self‑custody), increasing the risk of fraud, theft, and consumer losses for people who hold digital assets.
Creates regulatory uncertainty for banks and payment providers about what actions are permissible, which could raise operational and compliance costs for financial institutions.
Based on analysis of 2 sections of legislative text.
Prevents federal agencies from banning or restricting individuals' use of convertible virtual currency or their ability to self-custody digital assets for lawful purchases.
Introduced January 3, 2025 by Warren Davidson · Last progress January 3, 2025
Prohibits heads of Federal agencies from banning or limiting a person’s ability to use convertible virtual currency (CVC) to buy goods or services or from stopping a person from self-custodying digital assets in a self-hosted wallet. The bill defines key terms (convertible virtual currency, covered user, self-hosted wallet) and protects individuals who obtain CVC for personal purchases from agency restrictions on use or custody.