The US House provided its approval to a bill that prohibits the Federal Reserve from releasing digital dollars and CBDC, the central bank’s online currency, without receiving a green light from Congress.
The legislation, which is referred to as the CBDC Anti-Surveillance State Act (HR 5403), was approved by a vote of 216-192. Republicans expressed their apprehensions that a US CBDC could be employed to facilitate government control over the finances of citizens.
Although the Fed has no such plans, it appears that the Trump administration is concerned.
The legislation was introduced by House Majority Whip Tom Emmer, who contended that a digital dollar could serve as a “surveillance tool” for the government, enabling it to monitor transactions and potentially restrict activities that it deems politically unsuitable in nature.
House leaders were encouraged to endorse the bill by the American Bankers Association (ABA) earlier this week.
Recently, 71 Democrats and 208 Republicans gave the thumbs up for the Financial Innovation and Technology for the 21st Century Act (FIT21). This bill introduces a new crypto framework and gives the US Commodity Futures Trading Commission more control over online assets in spot markets. It also forms guidelines for the SEC’s attitude toward the crypto space.
In the crypto arena, this is the first time that a bill dedicated to regulations has received the green signal from the House. However, certain hiccups remain.
According to Secure Digital Markets’ COO, Alan Mittleman, the bill must be attached to the Senate. The bill will undergo committee alterations and face opposition from crypto detractors like Senator Elizabeth Warren.
Mittleman stated that President Biden is concerned about the lack of adequate safeguards against FIT21. Therefore, there is a need for further action.