The Financial Services Committee of the US House has moved forward with legislation aimed at prohibiting federal banks from utilizing or issuing central bank digital currencies (CBDCs), setting the stage for a forthcoming vote in the chamber.
During a committee meeting on April 2, members cast a vote of 27-22 to approve the CBDC Anti-Surveillance State Act. This was one of five bills under consideration in a markup session that included discussions on potential amendments. Additionally, lawmakers endorsed a bill governing payment stablecoins, preparing it for a complete vote in the House.
“In the last Congress, this measure passed the House by a margin of 216-192,” noted Minnesota Representative Tom Emmer, the bill’s sponsor. “As of now, this Congress has seen 114 cosponsors for the bill, which has garnered support from various groups, including the Independent Community Bankers Association, the American Bankers Association, Club for Growth, Heritage Action, and the Blockchain Association.”
A number of Republican legislators have focused on agencies such as the Federal Reserve and the Treasury Department, opposing their exploration of CBDC technology, frequently citing concerns over financial privacy.
After reintroducing the legislation in March, Rep. Emmer indicated that it aimed to solidify an executive order previously established by former President Donald Trump. This order, enacted on January 23, barred “the establishment, issuance, circulation, and use” of a CBDC in the United States.
Related: Effective crypto regulation requires Congressional involvement for sustainable change — Wiley Nickel
This is an evolving story, and more details will be provided as they emerge.