US House Blocks Federal Reserve’s Digital Dollar Plans

US House Approves Bill Prohibiting Digital Dollar Without Congressional Authorization

The US House passed the CBDC Anti-Surveillance State Act (HR 5403) with a vote of 216 to 192, prohibiting the Federal Reserve from issuing a digital dollar without explicit authorization from Congress. The legislation aims to address concerns about potential government control over citizens’ finances.

Republican Concerns and Opposition

Republicans expressed worries that a US central bank digital currency (CBDC) could be utilized for government surveillance and control. House Majority Whip Tom Emmer argued that a digital dollar could serve as a “surveillance tool” for the government, allowing tracking of transactions and potentially restricting certain activities.

Industry Response and Implications

The passing of the CBDC Anti-Surveillance State Act signifies ongoing debates and concerns surrounding the introduction of a digital dollar. The legislation reflects a shift in focus towards addressing potential government overreach and privacy implications.

House Delivers for Crypto with FIT21 Bill

On a separate note, the House recently passed the Financial Innovation and Technology for the 21st Century Act (FIT21), which aims to establish a new regulatory framework for the crypto market. This bill grants additional authority to regulatory bodies such as the US Commodity Futures Trading Commission and outlines the Securities and Exchange Commission’s approach to digital assets.

Challenges and Next Steps

While the passing of FIT21 is a significant milestone for the crypto industry, challenges lie ahead in getting the bill through the Senate. Industry experts emphasize the need for further revisions and potential opposition from key figures like Senator Elizabeth Warren. President Joe Biden’s concerns about consumer protections may also impact the bill’s journey towards becoming law.