– Republicans in the House Financial Services Committee advanced a bill to block the Federal Reserve from issuing a central bank digital currency (CBDC) directly to individuals.
– The bill, introduced by Rep. Tom Emmer, aims to prohibit the issuance of a CBDC that could enable government surveillance and restrictions on transactions.
– The Federal Reserve has been exploring the possibility of a CBDC but is not close to developing it yet.
– Some Democrats, including Rep. Stephen Lynch, criticized the bill as “an act of breathless stupidity,” arguing that the US would be left behind as 130 other countries explore CBDCs.
– Two amendments were proposed but did not receive majority votes. The bill now moves to the full House with uncertain prospects in the Senate.
– The bill is supported by the Blockchain Association, citing major privacy concerns with CBDCs and the importance of protecting the right to financial privacy.
– Other bills related to crypto regulation and stablecoins have advanced from the committee in recent months.
Republicans in the House Financial Services Committee have advanced a bill that would block the Federal Reserve from issuing a central bank digital currency (CBDC) directly to individuals. The bill, introduced by Rep. Tom Emmer, aims to prohibit the central bank from issuing a CBDC directly to individuals and also block it from indirectly issuing one through an intermediary. Emmer referred to a CBDC as a government-controlled programmable money that could enable surveillance and restrictions on Americans’ transactions. The Federal Reserve has been exploring the possibility of a CBDC but is not yet close to developing one. The bill faced pushback from Democrats on the committee, with Rep. Stephen Lynch calling it an “act of breathless stupidity.” The bill will now proceed to the full House, but its future in the Senate remains uncertain. Other bills related to cryptocurrency regulation have also advanced from the committee. The Blockchain Association expressed support for Emmer’s bill, citing major privacy concerns associated with CBDCs.
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