US Senators Renew Efforts to Block CBDC Implementation
A group of Republican senators in the United States, including Ted Cruz, Bill Hagerty, Rick Scott, Ted Budd, and Mike Braun, have filed The CBDC Anti-Surveillance State Act, which aims to prevent the creation of a central bank digital currency (CBDC) based on the dollar. The proposed legislation includes amendments to the Federal Reserve Act that would prohibit Federal Reserve banks from offering CBDCs or any digital asset similar to it directly to individuals. It also prohibits the indirect issuance of a CBDC by the Fed or its use in implementing monetary policy. However, the proposed bans do not apply to current cryptocurrency stablecoin issuers such as Tether and Circle.
Senators Battle Over CBDCs and DAMLA
The debate over CBDCs is not the only point of contention in US legislation. Senator Elizabeth Warren’s anti-money laundering (AML) DAAMLA legislation has also faced opposition. Critics argue that the legislation places burdensome transaction reporting requirements on crypto miners and validators. The debate around DAAMLA has gained momentum as crypto becomes a prominent issue in this year’s Presidential race.
The Blockchain Association, a Washington lobbying group, has expressed concerns over DAAMLA in a letter to the House Financial Services Committee and Senate Banking Committee. The letter has garnered support from 80 signatories, including former military, law enforcement, and intelligence officials.
US Congressman French Hill, who chairs the House Financial Services Subcommittee on Digital Assets, Financial Technology, and Inclusion, has highlighted that subjecting miners and validators to stricter reporting requirements may not be practical since they do not directly interact with customers but instead provide essential services for blockchain networks.
Hot Take: Protecting Freedom and Privacy
US senators are taking a firm stance against the potential implementation of a central bank digital currency (CBDC) based on the dollar. By filing The CBDC Anti-Surveillance State Act, these lawmakers aim to prevent the Federal Reserve from offering CBDCs or similar digital assets directly to individuals. This legislation reflects concerns about potential infringements on personal freedom and privacy by the Biden administration. At the same time, the debate around anti-money laundering legislation for cryptocurrencies continues to intensify, with critics arguing that stringent transaction reporting requirements could stifle innovation in the industry. As these discussions unfold, it is essential to strike a balance between regulatory measures and preserving individual rights and privacy.
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