Republican Senators Oppose CBDCs
Republican lawmakers, including Ted Cruz, Bill Hagerty, Rick Scott, Ted Budd, and Mike Braun, have put forward The CBDC Anti-Surveillance State Act, renewing their opposition to the potential central bank digital currency (CBDC) based on the dollar. The proposed act includes amendments to the Federal Reserve Act that aim to restrict the Federal Reserve from offering products or services directly to individuals, maintaining accounts on behalf of individuals, or issuing a CBDC or similar digital assets under any other name or label.
The act also prohibits the Fed from indirectly issuing a CBDC or using one to implement monetary policy. However, it includes a disclaimer that exempts current cryptocurrency stablecoin issuers like Tether and Circle from the proposed bans, provided that the stablecoins are open, permissionless, private, and fully preserve the privacy protections of United States coins and physical currency.
In a press statement, Texas Senator Ted Cruz expressed concerns about the potential infringement on citizens’ freedom and privacy by the Biden administration through the implementation of a CBDC.
Senators Debate Over CBDCs and DAAMLA
Senator Elizabeth Warren’s anti-money laundering (AML) DAAMLA legislation, which was introduced in 2022, has been the subject of debate in congress. The legislation includes stringent transaction reporting requirements for crypto miners and validators, leading to opposition from groups like the Chamber of Digital Commerce (CDC), which claims that the legislation could have negative implications for the cryptocurrency industry.
The debate surrounding DAAMLA and its impact on the crypto industry has intensified, especially as it becomes a key issue in the Presidential race. The Blockchain Association, a Washington lobbying group, has raised concerns over DAAMLA and its potential effects. In a letter to the House Financial Services Committee and Senate Banking Committee, the association highlighted the impracticality of subjecting miners and validators to stringent reporting requirements, considering their role in providing essential services for the operation of blockchain networks.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
