The United States House of Representatives voted on Thursday to prevent the Federal Reserve from directly issuing a Central Bank Digital Currency (CBDC) to American citizens. The CBDC Anti-Surveillance State Act, introduced by Rep. Tom Emmer (R-MN), passed with a vote of 262-192, primarily supported by Republicans.
This is the third crypto-focused bill approved by Congress this month, celebrated by the crypto community favoring decentralized currencies like Bitcoin. Emmer emphasized that the bill protects privacy, individual sovereignty, and market competitiveness.
CBDCs, unlike Bitcoin, are controlled by central banks and can track consumer activities, as seen with China’s digital yuan. Rep. French Hill (R-AR) supported the bill, warning against state control over digital currencies and advocating for private sector innovations like stablecoins.
Opponents, such as Rep. Maxine Waters (D-CA), argued that the U.S. should lead in creating a privacy-respecting CBDC to compete globally and criticized the bill for stifling innovation and weakening the Federal Reserve’s role in combating inflation.
Additionally, the House passed the Financial Innovation and Technology for the 21st Century Act (FIT21) on Wednesday, establishing regulations for cryptocurrencies and companies, with substantial bipartisan support.
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