The House of Representatives voted to retain Congress’ authority over current or future CBDC issuance.
On May 23, members of the U.S. House of Representatives voted on the Republican Anti-CBDC Surveillance Act (HR5403), which would ban the Federal Reserve from developing or launching government-backed dollar-pegged digital currencies.
Republican Majority Leader Tom Emmer proposed the policy, arguing that a central bank digital currency (CBDC) issued by the Federal Reserve would have disastrous consequences for U.S. monetary privacy.
CBDC is a digital form of national fiat currency regulated by the country’s top bank and created for retail or wholesale transactions. Rep. Emmer, who is pushing for a total ban on both, received support from the House of Representatives.
Amendments were also adopted to limit the Federal Reserve from conducting pilot and research programs on CBDCs. Republican lawmakers emphasized that the previously concluded ‘Hamilton Project’ was a blatant bypass of legislative oversight.
“My bill ensures that America’s digital currency policy remains in the hands of the American people and that any development of digital currencies reflects our values of privacy, individual sovereignty, and free market competitiveness,” Rep. Emmer said after the vote. said.
Washington Cryptocurrency’s Double Victory
Support for the CBDC Anti-Surveillance State Act joins bipartisan support for creating a digital currency framework. On May 22, the House also voted in favor of the 21st Century Financial Innovation and Technology Act, known as the FIT21 Act.
The FIT21 Act establishes shared cryptocurrency oversight between the Commodity Futures Trading Commission (CFTC) and the U.S. SEC. The CFTC mandates regulation of digital goods markets, including exchanges and broker-dealers.
Both bills will advance to the Senate for further hearings and possible increases as cryptocurrency advocates lobby for regulatory policies heading into the U.S. presidential election.