House Votes to Block Fed from Issuing Digital Dollar Currency

The House of Representatives has voted to maintain Congressional authority over any current or future issuance of Central Bank Digital Currencies (CBDCs).

On May 23, the U.S. House of Representatives voted in favor of the Republican CBDC Anti-Surveillance State Act (H.R.5403). This legislation prohibits the Federal Reserve from developing or launching a government-backed dollar-pegged digital currency.

Republican Majority Whip Tom Emmer introduced these policies, arguing that a Fed-issued CBDC would severely impact American monetary privacy. CBDCs are digital versions of a country’s fiat currency, regulated by the nation’s central bank, and designed for retail or wholesale transactions. Congressman Emmer’s initiative for a comprehensive ban on both types of CBDCs received support from the House.

Amendments restricting the Federal Reserve from conducting pilots and research programs on CBDCs were also passed. GOP members highlighted that the previously concluded “Project Hamilton” bypassed legislative oversight.

“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,” Rep. Emmer said after the vote.

For over two years, efforts have been made to educate, gather support, and pass this vital legislation. It aims to prevent unelected officials from issuing a financial surveillance tool that would fundamentally undermine American values.

Support for the CBDC Anti-Surveillance State Act has gained bipartisan backing, aligning with the broader goal of establishing a digital currency framework. On May 22, the House also supported the Financial Innovation and Technology for the 21st Century Act, known as the FIT21 Act.

The FIT21 Act clarifies the shared oversight of cryptocurrencies between the Commodity Futures Trading Commission (CFTC) and the U.S. Securities and Exchange Commission (SEC). The CFTC will regulate digital commodities markets, including exchanges and broker-dealers.

Both bills will now move to the Senate for further consideration and potential amendments as cryptocurrency advocates push for clear regulatory policies ahead of the upcoming U.S. Presidential elections.

Stay updated with the latest cryptocurrency news on Global Crypto News.