US House Passes CBDC Anti-Surveillance State Act
On May 23, the US House of Representatives voted in favor of the CBDC Anti-Surveillance State Act, a bill introduced by Majority Whip Tom Emmer to amend the Federal Reserve Act. The legislation is designed to prevent central bank digital currencies (CBDC) from being utilized for monetary policy or direct consumer services.
Ensuring Financial Privacy Amid Digital Advancements: House Passes CBDC Act
- The bill passed with a vote of 216-192, with the support of 165 Republican cosponsors.
- The debate surrounding the bill highlighted concerns about the misuse of CBDCs, with Republicans emphasizing these risks while Democrats focused on the importance of innovation and maintaining the dollar’s global dominance.
- Chairman Patrick McHenry underscored the threat of financial surveillance through CBDCs, citing examples such as the Chinese Communist Party’s monitoring of spending behaviors to implement a social credit system.
Chairman McHenry’s Statement
In response to government interest in CBDCs, Chairman McHenry emphasized the need for Congressional authorization to ensure that any CBDC issued reflects American values of openness, permissionlessness, and privacy.
Reaction from Whip Emmer
- Whip Emmer reiterated his dedication to enhancing the digital economy environment in the United States following the bill’s passage.
- He stressed the importance of aligning digital currency policy with American principles of privacy, individual sovereignty, and competitive market dynamics.
Support for Stablecoins
- The bill does not prohibit the issuance of dollar-denominated currency that embodies characteristics such as openness, permissionlessness, and privacy, potentially referring to stablecoins.
- Representative French Hill expressed support for stablecoins as a valuable innovation that could bolster the global dominance of the US dollar.
Speculation on Ripple’s Stablecoin
Members of the crypto community praised the potential compatibility of Ripple’s forthcoming stablecoin with the bill’s provisions, speculating on its future impact on the market.
Effects on Ripple’s Stablecoin Amid SEC Concerns
- Recent SEC actions have cast doubt on Ripple’s plans to launch a stablecoin, raising regulatory challenges for the company.
- The SEC’s redacted remedies reply brief indicated reservations about Ripple’s stablecoin release and potential impact on the crypto market.
US House’s Focus on Crypto Legislation
This marks the third instance of the US House passing cryptocurrency-related bills recently, demonstrating an ongoing commitment to addressing regulatory challenges and fostering innovation in the digital economy.
Overview of Passed Bills
- H.J. Res 109 aims to challenge the SEC’s accounting bulletin, while the Financial Innovation and Technology for the 21st Century Act (FIT21) outlines regulatory roles for the SEC and the Commodity Futures Trading Commission (CFTC).
- FIT21 also provides guidance on token issuance, trading practices, and custody in the crypto market.
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