US Bill Seeks to Protect Unhosted Crypto Wallets From Regulators

Rep. Warren Davidson (R-OH), a member of the Blockchain Caucus, introduced the bill on Tuesday.

AccessTimeIconFeb 15, 2022 at 9:40 p.m. UTC
Updated May 11, 2023 at 6:27 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

A U.S. bill seeks to prevent government agencies from limiting a person’s use of self-hosted cryptocurrency wallets, a technology that has been in the crosshairs of regulators over the past year. A copy of the bill was provided to CoinDesk.

  • The bill was introduced on Feb. 15 by Rep. Warren Davidson (R-Ohio), a member of the Blockchain Caucus, and would ban agencies from “restricting the use of convertible virtual currency by a person to purchase goods or services for the person’s own use, and other purposes.”
  • The legislation also prevents agencies from prohibiting users from “conducting transactions through a self-hosted wallet.”
  • Self-hosted or unhosted crypto wallets have been targeted by U.S. regulations over the course of the past year.
  • In late 2020, the U.S. Treasury Department proposed a controversial rule that would require crypto exchanges to collect personal details, including names and home addresses, from users wanting to transfer their cryptocurrency into a private wallet.
  • The unhosted crypto wallet rule was driven by then-Treasury Secretary Steven Mnuchin, since succeeded by Janet Yellen, though she hasn’t killed the possibility of the rule being implemented.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Brandy Betz

Brandy covered crypto-related venture capital deals for CoinDesk.

Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to to register and buy your pass now.