U.S. House approves the bill to prevent the Federal Reserve from issuing a CBDC: now it moves to the Senate.
On May 23, the U.S. House of Representatives passed the CBDC Anti-Surveillance State Act. The bill, H.R. 5403, was supported by 213 Republicans and three Democrats who voted in favor, while 192 Democrats opposed it. Introduced by Republican Representative Tom Emmer of Minnesota, the bill aims to prohibit the Federal Reserve from issuing a CBDC.
Supporters of the bill argue that a CBDC in the United States could lead to government overreach and control over citizens’ financial activities. On the contrary, opponents argue that such concerns are exaggerated and that the ban could hinder innovation and research in the public sector related to digital currencies.
Following the approval, Emmer stated:
Despite the approval in the House, the future of the bill remains uncertain. The bill will now have to pass into the hands of the Senate, predominantly controlled by Democrats, where it will undergo further scrutiny and debates. If approved by the Senate and signed by President Biden, it would entail a prohibition for the Fed to issue a CBDC. At that point, the issuance of a CBDC by the U.S. central bank would only be possible with permission officially granted by a vote of Congress.
