The House of Representatives decided to keep Congress in charge of any CBDC issuance that occurs now or in the future.
The Republican-sponsored CBDC Anti-Surveillance State Act (H.R.5403), which forbids the Federal Reserve from creating or introducing a government-backed digital currency pegged to the dollar, was approved by the U.S. House of Representatives members on May 23.
The policies were presented by Republican Majority Whip Tom Emmer, who contended that the Fed’s adoption of a central bank digital currency (CBDC) would have disastrous effects on the privacy of American money.
Developed for retail or wholesale transactions, CBDCs are a digital representation of a nation’s fiat currency governed by the top bank in that nation. The House gave Congressman Emmer’s request for a complete prohibition on both its approval.
It was also decided that the Federal Reserve’s authority to conduct CBDC research and pilot initiatives should be amended. Republicans emphasized that “Project Hamilton,” previously completed, was a blatant avoidance of legislative oversight. Rep. Emmer said after the vote:
“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”
Double Victory for Crypto in Washington
Bipartisan support for establishing a framework for digital currencies was combined with the backing for the CBDC Anti-Surveillance State Act. The House also approved the Financial Innovation and Technology for the 21st Century Act, or FIT21 Act, on May 22.
The U.S. SEC and the Commodity Futures Trading Commission (CFTC) have shared regulation of cryptocurrencies thanks to the FIT21 Act. Exchanges and broker-dealers operating in the digital commodities markets are now subject to CFTC regulation.
Both bills will be brought to the Senate floor for additional discussion and potential markups as cryptocurrency proponents advocate for regulatory measures ahead of the 2020 presidential election in the United States.
