The “CBDC Anti-Surveillance State Act” is now being discussed in the United States House Financial Services Committee. This Act aims to prevent the Federal Reserve from introducing a Central Bank Digital Currency (CBDC), addressing concerns related to privacy, individual sovereignty, and fair market competition.
Although there are members of Congress, like Tom Emmer, the Majority Whip of the United States House of Representatives, who have reservations about CBDCs due to their impact on privacy and personal freedoms, the future of digital currency in the US remains uncertain. If this act is passed, it would prohibit the government from exploring digital currency in the future, potentially hindering the country’s technological progress.
On the other hand, it’s worth noting that the bill is up for debate in the House of Representatives. This presents an opportunity for opponents of technological advancement to express their concerns, potentially resulting in revisions or even the rejection of the act.
The regulatory landscape surrounding crypto adoption and Distributed Ledger Technology (DLT) is complex, especially in the United States. Within this intricate web of regulations, conflicting authority between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) creates significant challenges. These conflicts have led companies such as Coinbase to explore more favourable regulatory environments beyond the borders of the United States.
The “CBDC Anti-Surveillance State Act” has now cleared a significant hurdle by passing the House Financial Services Committee. Representative Tom Emmer, the author of the bill, emphasized its support among 60 members of Congress and stressed the importance of preserving American values in the digital economy. He made analogies to the actions of the Chinese Communist Party in his argument that a centrally managed digital currency may be used as a tool of monitoring.
Emmer, along with 49 co-sponsors, reintroduced the bill in the House of Representatives on September 12. The legislation includes provisions to prevent the Federal Reserve from issuing a CBDC to individuals and from utilizing a CBDC for implementing monetary policy. The bill is awaiting a vote in Congress and a decision will be made.