Keep Your Coins Act Has Passed US House Financial Service Committee

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Keep Your Coins! ~ says US House Committee on Financial Services by passing the bill with same name. My initial thoughts were, What a cool title for a bill?! Which quickly turned into a question. Why do we need government's permission to keep our coins again? I thought there were already property laws in place that protected people's properties. Coins are property, aren't they?

The intentions of the bill are good. The goal is to protect self-custody. Congressman, Warren Davison, who introduced the bill in February of this year believes there is possibility of self-custody might be attacked by those who would choose to gain control over digital assets. This concern has been around since the early days of bitcoin. There were many who have said and still say that governments wouldn't allow any form of currency or assets to replace the functions of central banks and fiat currencies. Since bitcoin and crypto carry functions of currencies as well, government may deem such assets to be a threat to status quo. There are also others who believe bitcoin and crypto can be confiscated if governments choose to. Also, there are possibilities of making holding crypto assets difficult like make them illegal, or implementing heavy taxation, or ordering banks to freeze accounts of those who are involved with crypto assets.

I do not hold these concerns and believe this is a nonissue. Because I believe existing laws already protect property, and digital assets in self-custody are property. Regardless of some signs of corruption, free market exists and it works. Moreover, unlike physical property digital property is not that easy to confiscate. Then there are these boating accidents people keep losing their private keys at. Any actions to attack self-custody may end up failing miserably. Since digital assets, especially decentralized ones are attached to any physical locations, their jurisdictions are clearly defined either. If one country were to adopt anti-self-custody laws, digital assets would lose their imaginary presence in such locations in no time and reappear in more crypto friendly locations. It is highly unlikely all countries of the world united to make crypto illegal or try to undermine self-custody.

Regardless of how crazy it sounds that a bill would want to give permission for people to own their property, it is still a positive move for crypto. I guess extra publicity and legal protections wouldn't hurt. There is one thing this bill addresses is actually very useful. Not only the bill wants to protect self-custody, it also prohibits federal agencies from restricting the use of digital assets by people to purchase goods and services for personal use. So, as long as transactions are lawful, use of digital assets like fiat currencies would be protected by law. I think this part of the bill is really good. At the very least it breaks psychological barriers, that somehow crypto is only used for illegal activities. It may also encourage businesses and merchants to adopt crypto technologies as payment systems.

Decentralized cryptocurrencies huge amount of benefits for merchants. By using such technologies, merchants remove banks and payment networks from the equitation and won't have to pay unnecessary fee for simply receiving payments. Finality of transactions would also protect the merchants from fraudulent transactions and charge backs. Instant settlement would save merchants time and have funds available right away to run their business in a more efficient manner. Not paying fees to traditional payment systems could also result in merchants lowering prices for their products and services to gain more business. This in return helps customers as well. It would also encourage free market competition between different decentralized crypto technologies. Business may find bitcoin transactions useful in certain situation, or may prefer Hive Dollars in different situations. For example wholesale deals that involve large amounts of money and international payments can be settled in bitcoins. At the same time daily sales of products and services can be conducted in HBD. Because HBD carries the value USD, it may help with accounting and keeping prices consistent for all customers. By using HBD merchants can keep unused funds in Savings and gain some interest while funds are sitting idle. Even for a very short period of time, this can be a bonus value added for the overall business operations. I used bitcoin and HBD as example. But I am sure there are other useful crypto assets as well. Maybe other crypto assets can work better for very different situations. For example Litcoin can be utilized as well.

Keep Your Coins Act is not a law yet. It probably never will become one. Legislative process is long and boring. Many bills end up becoming waste of time, and never become laws. This bill only passed the House committee. Next steps would be making it to the House floor and vote by the entire chamber. Not may bills are brought for voting either. Even if they brought the bill for voting in the House, there will be more debates and amendments that may change the entire goal of the bill and it may also become the opposite of it was initially intended to be. Let's say it passes the House. Then it needs to go to Senate. Then Senate decides to vote on it or not, they probably would change it more and send it back to House. Lets's say Senate approves it too. Then it goes to the president who probably wouldn't sign either. Even if the US President signs the bill into the law, by the law is probably completely different. Even in the best case scenario we would end up with something we already had, something that made sense long time ago. Better idea could be for governments to stay away and maybe focus on other things they can make improvements on.

What could be useful is a comprehensive crypto law that clarifies governments role in regulating it, affirms the property rights of holding and using crypto, and making traditional financial systems to compete with this new technology in free and fair market. Governments are too slow to do anything. In the US, house representatives are elected for two year, senators are elected for six year term, and presidents are elected for four years. Crypto has been around for more than a decade. There is still no useful, beneficial, and competent legislature made through the full process of making a law. However, they have been many discussions about crypto, many hearing about crypto. There is more than enough research and information available about crypto as a financial assets and technology. Yes, Congress hasn't made any meaningful progress regarding crypto yet. Maybe it is a good thing. I don't know.

Financial Services committee has been busy. In addition to Keep Your Coins Act, they have also recently passes bills on crypto title, Financial Innovation and Technology for the 21st Century Act and Clarity for Payment Stablecoins Act. It is obvious that there are public officials who are interested in creating some legal framework around crypto and adding clarity. The question is if such efforts will be done in good faith with protecting property rights, encouraging technological advancement and entrepreneurship in mind. Or will such efforts become victim of hidden agendas to protect the central banks, traditional financial systems, and enriching the donors.

Ultimately, it seems to me decentralized systems are unstoppable at this time. Harnessing their power and integrating them to traditional systems might be the only reasonable and beneficial path to take. Let me know your thoughts in the comments. Are you keeping your coins?

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Sadly people are so accustomed to governments telling them what they can and cannot do that people are worried about the government not saying something about a topic. This is the case with self custody. People forget that we have inherent rights and that’s quite unfortunate! Self custody is definitely an inherent right in my opinion!

It is annoying that by the time it gets to its final form, the only thing that will likely stay the same is the name of the bill. It could contain absolutely nothing from the original one passed lol.

This may be just another excuse to debate crypto, packaged in the form of something positive. Like you said, if it ever is signed, it could be an entirely different thing.

Are you keeping your coins?

Yes!!! I'm not giving up my crypto :)

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I don't hold those concerns either and I don't think I want the government getting their hands on my crypto. They are just out for control.

It's wild how this is even a thing anymore. I have zero respect for my government anymore and they can pretty much kiss my butt for trying to take my assets all the time. It honestly feels like freedoms have quickly disappeared around here lately for no good reason and as far as I'm concerned they have no right to tell me what I'm allow to use for money, own etc.

As a response to your question of "Are you keeping your coins?"

Well yes, I'm definitely keeping my coins, and I don't need permission from any government to do that, which is why I'll always be in love with decentralized platforms like Hive. 😊

While governments won't accept Cryptocurrency as a legal tender or replacement to their national currency I think companies will be more pliable to accept crypto for services. Hopefully there are no bills in the works that prevent corporations from partaking in crypto activities with costumers. Otherwise it'll change the game.

Thanks for sharing the news on the 'Keep your coins' act. It'll be interesting to witness how governments and corporations decide what to do with digital currency as a whole.

Congress may insider trade with impunity and accept campaign donations (bribes!). The US empire is the last place to adopt blockchain and decentralized democracy.

I think just the proposition, whether it becomes a law or not, is a positive for crypto as a whole, because it allows those who are just at the edge of crypto to see that there are efforts afoot to "legitimize" crypto by addressing digital currencies directly, by law.

Whether it will mean much functionally speaking, it means something in terms of soothing those inclined to think "but what if crypto is ILLEGAL?"

Yes, we're keeping our coins!

To roll out CBDC, they will never approve this because I heard CBDC has expiry date.
I find it unfortunate that the US Congress would come up with such bills and talk so much that important issues in US are not addressed, such bad governance in certain states that just letting people rot at streets "in the name of freewill"

So often I read stuff like this and it stinks of fear. Thanks for being a light in the darkness.

Keep Your Coins Act

How sure are we that this bill is going to be passed ?.
The government ain't crazy enough to allow such life changing transformation to become effective in the lifes of citizens.

Even without this bill, they already see crypto as a threat, which i don't know why.
But i think with time, we would start having some people in the government who would help resist most of this pressure, but it might just take some time.

Do you think if this is passed as law, it will actually favour Crypto?

Yes I think most Government don't support the use of Cryptos for trading and accepting them to be the legal tender or medium for except. But we still need them to endorse it so that we are highly protected of these assets.

blockchain & crypto are for the long run

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