US lawmakers vote to advance anti-CBDC bill

The US House Financial Services Committee has advanced a bill aimed at preventing federal banks from using or issuing central bank digital currencies, or CBDCs, paving the way for a vote in the chamber. In an April 2 committee session, lawmakers voted 27-22 in favor of passing the CBDC Anti-Surveillance State Act. The bill was one of five the committee considered in a markup hearing discussing possible amendments. Lawmakers also approved a bill regulating payment stablecoins, setting up the legislation for a full House vote. “Last Congress, this bill passed out of the House of Representatives by a 216-192 vote,” said Minnesota Representative Tom Emmer, the anti-CBDC bill’s sponsor. “So far this Congress, this bill has 114 cosponsors and support from groups ranging from the Independent Community Bankers Association and the American Bankers Association to Club for Growth, Heritage Action, and the Blockchain Association.” Related: Crypto regulation must go through Congress for lasting change — Wiley Nickel Many Republican lawmakers have targeted institutions like the Federal Reserve or Treasury Department from exploring CBDC development, often citing financial privacy concerns. After reintroducing the bill in March, Rep. Emmer suggested it was an attempt to codify an executive order from US President Donald Trump into law. That order, signed on Jan. 23 , prohibited “the establishment, issuance, circulation, and use” of a CBDC in the United States. Is it politically advantageous to oppose CBDCs? It’s unclear whether the anti-CBDC bill will have the votes in the House and Senate to be passed to Trump’s desk to sign into law. Senator Ted Cruz introduced a companion bill to Emmer’s on March 26, suggesting a coordinated effort by Republicans to push the legislation through. Since the development of digital assets, government entities like the Fed have explored the possibility of releasing a CBDC. However, many US lawmakers and industry leaders have opposed the idea, claiming the technology could be used to monitor Americans’ financial transactions. Magazine: Solana ‘will be a trillion-dollar asset’: Mert Mumtaz, X Hall of Flame This is a developing story, and further information will be added as it becomes available.