US Congressmen Advance with Legislation to Oppose CBDC

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In the midst of their ongoing opposition to the implementation of a central bank digital currency (CBDC), the US House Financial Services Committee has made a fresh statement

US Committee to Decide Future of Digital Dollar

On September 20, the committee will decide on two proposals related to the future digital dollar, in accordance with the statement from chairman Patrick McHenry. It is noteworthy that during markups, legislators engage with the specifics of a measure. 

Digital Dollar Prevention Act

The Digital Dollar Pilot Prevention Act, or H.R. 3712, is one of the laws that will be discussed which was first proposed by congressman Alex Mooney in the month of May. Notably, the proposed bill forbids the Federal Reserve from starting pilot program to test CBDCs without congressional approval. 

The second legislation in question is a proposed modification to the Federal Reserve Act that forbids Fed banks from directly marketing particular products and offerings to consumers and outlaws the implementation of CBDCs for fiscal policy and other objectives.

Privacy Concerns

As the bill states: “A Federal reserve bank shall not offer a central bank digital currency, or any digital asset that is substantially similar under any other name or label, indirectly to an individual through a financial institution or other intermediary.”

The committee adopted two crypto regulatory bills after a large number of US lawmakers approved on July 26 to both the Financial Innovation and Technology for the Twenty-First Century Act and the Blockchain Regulatory Certainty Act. 

US to Regulator Stablecoin Industry

Moreover, members of the US House Financial Services Committee unveiled a bill in April that would have regulated stablecoins in the area. Their main objective is to provide a solid and thorough regulatory framework for stablecoins like the USDC, Tether (USDT), and others, which are tied to the US dollar. Additionally, the Texas House of Representatives passed legislation on April 20 requiring cryptocurrency exchanges to have enough cash on hand to fulfill their obligations to customers.

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