The House of Representatives voted to maintain Congressional power over any present or future CBDC issuance.
On May 23, the U.S. House of Representatives members voted for the Republican CBDC Anti-Surveillance State Act (H.R.5403) prohibiting the Federal Reserve from developing or launching a government-backed dollar-pegged digital currency.
Republican Majority Whip Tom Emmer proposed the policies, arguing that a Fed-issued central bank digital currency (CBDC) would have catastrophic consequences for American monetary privacy.
CBDCs are a digital form of a country’s fiat currency, regulated by a nation’s apex bank, and created for retail or wholesale transactions. Congressman Emmer’s push for a blanket ban on both received support from the House.
Amendments limiting the Federal Reserve from conducting pilots and research programs on CBDCs were also adopted. GOP members stressed that the previously concluded “Project Hamilton” was a flagrant bypass of legislative oversight.
“My legislation ensures that the United States’ digital currency policy remains in the hands of the American people so that any development of digital money reflects our values of privacy, individual sovereignty, and free market competitiveness,” Rep. Emmer said after the vote.
Double victory for crypto in Washington
Support for the CBDC Anti-Surveillance State Act joined bipartisan backing for creating a digital currency framework. On May 22, the House also voted in favor of the Financial Innovation and Technology for the 21st Century Act, known as the FIT21 Act.
The FIT21 Act clarifies shared crypto oversight between the Commodity Futures Trading Commission (CFTC) and the U.S. SEC. The CFTC commands regulation over digital commodities markets, which include exchanges and broker-dealers.
Both bills will proceed to the Senate floor for further hearing and possible markups as crypto proponents lobby for regulatory policies heading into the U.S. Presidential elections.
