The U.S. House of Representatives voted to uphold Congressional authority regarding any existing or prospective issuance of Central Bank Digital Currencies (CBDCs).
On May 23, members of the House of Representatives passed the Republican-sponsored CBDC Anti-Surveillance State Act (H.R.5403), which bars the Federal Reserve from creating or introducing a government-backed digital currency pegged to the dollar.
Republican Majority Whip Tom Emmer championed these policies, asserting that the implementation of a Central Bank Digital Currency (CBDC) by the Federal Reserve would pose significant risks to the privacy of American monetary transactions.
Central Bank Digital Currencies (CBDCs) represent the digital iteration of a country’s fiat currency, regulated by the nation’s central bank, and intended for use in retail or wholesale transactions. Congressman Emmer’s efforts to impose a comprehensive ban on both aspects garnered backing from the House.
Moreover, amendments were passed to curtail the Federal Reserve’s ability to conduct pilot programs and research initiatives on CBDCs. Republican members emphasized that the prior “Project Hamilton” circumvented legislative oversight.
Following the vote, Rep. Emmer remarked, “My legislation ensures that the digital currency policy of the United States remains under the control of its citizens, ensuring that any advancements in digital money align with our principles of privacy, individual sovereignty, and the competitive nature of free markets.”
Dual Triumph for Cryptocurrency in Washington
Crypto enjoyed bipartisan support in Washington with the endorsement of the CBDC Anti-Surveillance State Act, accompanied by the passage of the Financial Innovation and Technology for the 21st Century Act (FIT21 Act) on May 22.
The FIT21 Act delineates the shared oversight of cryptocurrencies between the Commodity Futures Trading Commission (CFTC) and the U.S. Securities and Exchange Commission (SEC). The CFTC assumes regulatory authority over digital commodity markets, including exchanges and broker-dealers.
Both bills are now poised to advance to the Senate floor for further deliberation and potential amendments as crypto advocates advocate for regulatory frameworks leading up to the U.S. Presidential elections.
0 Comments