Sponsors (3)
The bill preserves consumer choice and individual custody for lawful crypto transactions and gives businesses regulatory certainty, but it raises significant illicit‑finance risks, shifts loss liability onto users, and may create conflicts and uncertainty for regulators and financial institutions.
Consumers and businesses that accept crypto can continue using and transacting in convertible virtual currency (CVC) because federal agencies would be prohibited from banning such lawful transactions, preserving payment choice and market access.
Individuals who hold digital assets can retain direct control by self-custodying in self‑hosted wallets for lawful transactions, preserving personal custody and autonomy over crypto holdings.
The prohibition on agency actions to restrict CVC use could weaken regulators' ability to block illicit finance, increasing risks of fraud, money laundering, and other criminal uses of digital currencies.
Individuals and small businesses may bear greater financial loss risk because protections for mandatory self‑custody shift liability and recovery burdens onto users if funds are lost, stolen, or mismanaged.
Barring federal agencies from limiting CVC transactions could conflict with existing banking, payment‑system, or other regulatory rules, creating legal uncertainty for financial institutions, regulators, and affected businesses.
Based on analysis of 2 sections of legislative text.
Bars federal agencies from prohibiting or restricting individuals’ use of convertible virtual currency or their ability to self‑custody digital assets using self‑hosted wallets for lawful purposes.
Official title: Prohibit Federal agencies from restricting the use of convertible virtual currency by a person to purchase goods or services for the person's own use, and for other purposes.
Introduced July 15, 2025 by Theodore Paul Budd · Last progress July 15, 2025
Prohibits heads of federal agencies from banning, restricting, or otherwise impairing a person’s ability to use convertible virtual currency (CVC) to buy goods or services or to self-custody digital assets using a self‑hosted wallet. Defines key terms including "convertible virtual currency," "covered user," and "self‑hosted wallet," and makes those protections apply to any covered user conducting lawful transactions.