U.S. Representative Warren Davidson (R-Ohio), a member of the House Financial Services Committee, has expressed his support for the passage of his proposed Keep Your Coins Act. This legislation aims to maintain the ability of cryptocurrency users to conduct transactions without the need for a third-party intermediary. In a post on Dec. 19, Davidson stated that the bill would shield Americans from the introduction of a central bank digital currency (CBDC).

"Anyone attacking self-custody opposes individual freedom," Davidson said. "They want someone to control your assets on their behalf. Pass my Keep Your Coins (KYC) Act to protect self-custody. This is the best safeguard against CBDC or default by third-party custodians (like FTX or BlockFi)."

The congressman first introduced this legislation in February 2022, as per a press release from his office. The bill seeks to prevent federal agencies from implementing rules that hinder individuals from acting as self-custodians of their digital assets. Davidson underscored its importance by saying, "It’s vital that we preserve the attributes of cash transactions by protecting the permissionless nature of cash. No third party should be required for two people (or companies) to use money as a means of exchange, store of value, and record of account."

In July 2023, Davidson reintroduced the bill which was then referred to the Financial Services Committee, according to congress.gov.

Nicholas Anthony, a policy analyst at Cato Institute’s Center for Monetary and Financial Alternatives, observed in a Dec. 6 commentary that global officials continue to advocate for the development and deployment of CBDCs. This is despite current CBDC pilot projects not gaining significant traction. Anthony noted that CBDCs launched in China, Jamaica, and the Bahamas have "struggled to gain adoption," even with incentives such as giveaways, loyalty points, and discounts.

Anthony cautioned against the implementation of CBDCs. "After seeing the failures in practice and considering the risks still looming, neither the U.S. government nor governments abroad should launch a CBDC," he said. Anthony added that "the costs outweigh the benefits." Instead, he suggested that policymakers could explore policy ideas like enhancing financial privacy protections or creating oversight of federal regulators if they are looking to "transform the financial system in a way that benefits everyone."

Davidson, a U.S. Army veteran, was elected to the U.S. House of Representatives in 2016, according to his website.