Reintroduced anti-CBDC bill passes US House Financial Services Committee
Quick Take The U.S. House Financial Services Committee advanced the anti-CBDC bill introduced by House Majority Whip Tom Emmer. The bill reflects concern that CBDCs potentially infringe on individual privacy by monitoring transactions.
The Anti-CBDC Surveillance State Act (H.R. 1919) passed voting in the U.S. House Financial Services Committee on Wednesday, with 27 in favor and 22 opposed.
The bill, introduced by House Majority Whip Tom Emmer, R-Minn., aims to prevent the use of central bank digital currency for monetary policy and prohibit Federal Reserve banks from offering products and services directly to an individual.
"The Anti-CBDC Surveillance State Act ensures that the United States digital currency policy is in the hands of the American people, not the administrative state," said Emmer during Wednesday's markup session.
The anti-CBDC bill stems from ongoing concerns over the potential broad monitoring of financial transactions by the government. Emmer previously stated that CBDCs are "government-controlled programmable money" that could give the U.S. government the ability to "choke out" politically unpopular activity. "[The bill] reflects our American values of privacy, individual sovereignty, and free market competitiveness," Emmer said Wednesday.
The House Majority Whip introduced his previous anti-CBDC bill, H.R. 5403, in 2023. The bill passed the House Financial Services Committee vote and the House of Representatives vote in 2024, moving to the Senate. However, it did not receive a voting schedule before the 118th Congress ended in January.
Democratic lawmakers previously criticized the efforts to ban CBDCs as anti-innovation, where Rep. Maxine Waters said that banning CBDC would mean the U.S. would lose out on innovative means of payments and lead to the dollar losing its status as the world's reserve currency.
According to the Atlantic Council's CBDC tracker , 134 countries and currency unions, which represent 98% of global GDP, are exploring a CBDC, where 66 countries are in advanced stages of exploration.
The reintroduced anti-CBDC bill H.R. 1919 aligns with right-wing President Donald Trump's January executive order to "protect" U.S. citizens from CBDCs, which may pose a threat to financial stability, individual privacy and U.S. sovereignty. In line with this stance, Federal Reserve Chairman Jerome Powell stated in February that the Fed will not develop a digital currency under his leadership. U.S. Treasury Secretary Scott Bessent also said in January that he sees "no reason" for the country to have a CBDC.
Meanwhile, the House Financial Services Committee also voted to advance the legislation for stablecoin regulation during Wednesday's markup session. The "Stablecoin Transparency and Accountability for a Better Ledger Economy" bill seeks to set a framework for dollar-pegged stablecoins to grow their global competitiveness.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Expanding computing power on one hand, grabbing spectrum on the other! Barclays optimistic about SpaceX (SPCX.US) acquiring T-Mobile: Complementary advantages of ground networks and Starlink
After Space's stock price rose for two consecutive days, Barclays stated that T-Mobile is the "cleanest" choice among SpaceX’s potential acquisition targets. Barclays considers Verizon a major unknown, while AT&T has the lowest strategic fit.
Will the Federal Reserve raise rates in December? Tonight's CPI will be the final verdict!
The October CPI data will be released tonight, with the market pricing in an 86% chance of a rate hike. Goldman Sachs predicts a core CPI month-on-month increase of only 0.16%, much lower than market expectations. However, statistical distortions in health insurance and declines in used car prices—these "soft factors"—are unlikely to be reflected in the core PCE, which the Federal Reserve places greater emphasis on. The data may trigger a relief rally, but it is unlikely to change the underlying hawkish sentiment.
A 14x PE is not a bargain! Renowned wealth management CEO warns: If Nvidia (NVDA.US) earnings are revised down by 5%, its stock price could drop by 40%.
Ritholtz Wealth Management CEO Josh Brown questioned the idea that a 14x P/E ratio is a bargain and issued a warning: "If Nvidia's earnings over the next 12 months are revised down by 5% from our expectations, the stock could potentially drop by 40%."
Citibank: US beer sales will not bottom out by 2026, non-alcoholic beer is the only clear long-term growth track
Beer shipments in the United States have declined for the fifth consecutive year and are set to fall below 1980 levels. Citibank: Only non-alcoholic beer still has long-term growth potential.
Crypto prices
More
