In a partisan vote, the U.S. House of Representatives passed a bill banning the Federal Reserve from issuing central bank digital currencies (CBDCs). The bill, known as the CBDC Anti-Surveillance State Act, was introduced by Majority Leader Tom Emmer (R-Minnesota) as Republicans raised concerns about the potential for CBDCs to infringe on Americans’ privacy and autonomy. .
Democrats, on the other hand, argued in a pre-vote debate on Thursday that these concerns were overblown and that banning the development of digital dollars would stifle public sector innovation and research. In the end, this bill received support from 213 Republican lawmakers and 3 Democratic lawmakers, while 192 Democratic lawmakers opposed it.
The vote stands in stark contrast to the bipartisan support the day before, when 71 Democrats joined 208 Republicans to pass the 21st Century Financial Innovation and Technology Act. The bill, which focuses on cryptocurrency market structures, aims to give the U.S. Commodity Futures Trading Commission more authority over spot markets for digital assets and outline the agency’s approach to the sector.
The passage of the FIT21 Act was celebrated by industry stakeholders as a significant milestone in increasing awareness of the importance of the cryptocurrency industry in the United States. Kristin Smith, head of the Blockchain Association, described it as a “watershed” for the cryptocurrency sector, while Nicole Valentine, director of fintech at the Milken Institute, called it a “welcome step.” “He welcomed it.
But both the market rescue bill and the anti-CBDC bill face uncertain prospects in the Senate, and neither has a clear opponent. With half of Congress lacking a partner for both bills, it’s likely that both bills will stall in the Senate, limiting their potential impact on the regulatory environment surrounding cryptocurrencies.
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