The U.S. House Financial Services Committee Approves Anti-CBDC Bill with a 27-22 Vote, Aiming to Prevent Fed from Issuing Digital Dollars Due to Privacy Concerns.
The U.S. House Financial Services Committee just approved the Anti-State Surveillance CBDC Act with a close 27-22 vote, clearly reflecting partisan divisions. This move marks a significant step in legislative efforts to prevent the Federal Reserve (Fed) from issuing a digital dollar – a central bank digital currency (CBDC).
The bill, passed during a late-night meeting on April 2, is now being transferred to the full House for review. The primary goal is to prohibit Fed-affiliated banks from issuing, operating, or using CBDC in any form.
During the same meeting, the Committee also passed a separate bill to establish a legal framework for payment stablecoins, indicating the urgent need to regulate rapidly developing decentralized financial and digital assets in the U.S.
Representative Tom Emmer (Republican - Minnesota), the bill's main sponsor, emphasized that the document has garnered increasing consensus. "In the previous term, the bill passed the House with 216 votes in favor and 192 against," he said, also confirming that the current version is supported by 114 legislators and several influential organizations, including the Independent Community Bankers Association, the American Bankers Association, and policy advocacy groups like Club for Growth, Heritage Action, and the Blockchain Association.
According to Emmer and supporting legislators, the primary concern revolves around the risk of mass financial surveillance if a government-issued CBDC becomes a reality. Specifically, they argue that CBDC could allow authorities to track citizens' detailed consumption behaviors and personal transactions, potentially threatening privacy and civil liberties.
Emmer also suggested that the act institutionalizes former President Donald Trump's opposition to CBDC – who repeatedly declared he does not support CBDC issuance in the U.S.
However, the journey for the bill to become federal law still faces many obstacles. While its passage in the House is likely due to the Republican Party's seat advantage, the bill will face significant challenges in the Senate, where the Democratic Party controls.
Nevertheless, Senator Ted Cruz's (Republican - Texas) submission of a similar bill in the Senate at the end of March indicates a coordinated Republican effort to push the CBDC issue to the center of congressional agenda in an election year.
While Congress continues heated debates, agencies like the Fed and Treasury continue researching CBDC issuance, assessing both potential and risks in a context where many countries – including China and the European Union – are testing or moving closer to deploying their own digital currencies.
