Advancement of CBDC prohibition in the U.S. marked by political disagreements between Republicans and Democrats
The U.S. House of Representatives is set to vote on a procedural measure that aims to merge two significant crypto bills: the Anti-CBDC Surveillance State Act and the bipartisan CLARITY Act.
The Anti-CBDC Surveillance State Act, led by Rep. Tom Emmer (R-Minn.), would block a Federal Reserve digital currency, if passed. Initially, the CBDC ban was attached to the defense bill to satisfy GOP hardliners, but it's now being pushed to be included in the broader crypto market framework instead.
On the other hand, the CLARITY Act, which gained support from 78 Democrats, sets clearer rules for crypto tokens. Democratic Senators, led by Ruben Gallego, have advocated for bipartisan cooperation for its passage. While the Democrats' stance on future legislation banning CBDCs or combined crypto market structure laws is not explicitly stated, they favour clear regulation and industry protection.
The merging of the CBDC ban with the CLARITY Act was initially resisted by Republicans due to concerns about its chances in the Senate. However, House leaders are now attempting to combine the two bills, with the House Rules Committee confirming the CBDC bill will be appended to the market structure legislation before going to the Senate.
Spokesperson Brooke Nethercott added that they are ready to work with Banking Chair Tim Scott and Senator Cynthia Lummis to get both provisions signed into law. Spokesperson for House Financial Services Chair French Hill stated that passing both the CLARITY Act and Anti-CBDC bill are key priorities for members of the House.
The passage of these bills, including the CBDC ban and the CLARITY Act with partial bipartisan support, highlights the delicate balance in U.S. crypto regulation. Meanwhile, concerns continue to hover over these developments in the crypto market.
The arrival of new U.S. crypto legislation has reshaped the domestic landscape and influenced the global market, pushing sentiment toward a more pro-crypto stance. However, the push by BRICS and other nations to adopt digital currencies is a calculated shift to reduce reliance on the U.S. dollar, signalling a long-term challenge to America's monetary dominance.
In other developments, Democrats have raised concerns about Trump's family crypto ventures, including American Bitcoin, World Liberty Financial, and his personal memecoin, but it's unclear if Republicans will address these issues.
As the vote on these issues approaches within two weeks, the future of crypto regulation in the U.S. remains uncertain, with a delicate balance between privacy and regulation, bipartisan cooperation, and global competition.
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