Supporters say the new bill will prevent unelected bureaucrats from using CBDCs (central bank digital currencies) to spy on U.S. citizens.
The U.S. House of Representatives voted on Thursday in favor of banning the Federal Reserve from issuing central bank digital currencies (CBDCs) directly to its citizens.
The CBDC Anti-Surveillance State Act received the support of 213 Republicans and 3 Democrats, with the final vote being 262 in favor and 192 against.
Republicans pass yet another encryption bill
The bill, sponsored by pro-cryptocurrency Rep. Tom Emmer (R-MN), marks the third cryptocurrency-focused legislation approved by Congress this month and has been warmly welcomed by the online crypto community, which favors trustless, decentralized currencies like Bitcoin.
“My legislation ensures America’s digital currency policy remains in the hands of the American people so that any digital currency developed reflects our values of privacy, individual sovereignty, and free-market competitiveness,” Emmer wrote on Twitter after the bill passed Thursday.
"My bill ensures that decisions about America's digital currency policy remain in the hands of the people, ensuring that digital currency evolves in a direction consistent with our values of privacy, individual sovereignty, and market competitiveness," Emmer wrote on X after the bill passed Thursday.
Unlike decentralized Bitcoin, CBDCs are directly controlled and issued by the central bank, and they are either backed by the country's legal tender or used as a substitute for legal tender. In some other countries, such as China's digital yuan, CBDCs are not only used for transactions, but also used to track consumer purchases and participate in building a social credit system for every citizen.
Rep. French Hill (R-AR) supports the bill. He is concerned that if the state has such power, it could pose a threat. He cited an example of his concerns. In 2022, Canadian Prime Minister Justin Trudeau froze the bank accounts of citizens who funded anti-vaccine mandate protesters. This incident highlighted the risks that surveillance powers can bring.
Hill stressed in Thursday’s discussion that there is no need to launch a retail central bank digital currency because our existing payment system is already able to effectively leverage the strengths of the private sector. He cited the example of a payment stablecoin launched by the private sector as an excellent innovation.
Democrats oppose cryptocurrency legislation
Maxine Waters added: "This bill seeks to stifle American innovation and international competitiveness while undermining the authority of the federal agency most critical to fighting inflation."
On Wednesday, the House also passed the Financial Innovation and Technology for the 21st Century Act (FIT21), which establishes clear rules for how cryptocurrencies and crypto companies can register with federal market regulators.
Unlike Thursday's bill, FIT21 received substantial bipartisan support, with 71 Democrats voting in favor.
Conclusion:
With the passage of the CBDC Anti-Surveillance State Act by the U.S. House of Representatives and the approval of the FIT21 Act, the U.S. has taken important steps in cryptocurrency legislation. These bills not only reflect Congress’s commitment to protecting citizens’ privacy and promoting financial innovation, but also reflect the bipartisan consensus on certain key issues.
Despite the differences, the passage of the legislation provides clearer guidance and a regulatory framework for the future development of the cryptocurrency industry. This will help ensure the United States' leadership in the global digital currency space while maintaining consumer rights and market integrity.
As legislative work continues and cryptographic technology continues to advance, the industry is moving toward building a more secure, transparent, and competitive digital financial ecosystem. #CBDC #美联储 #央行数字货币
