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>>The US House of Representatives has taken action to temporarily halt the Federal Reserve’s exploration of a digital dollar.

The US House of Representatives has taken action to temporarily halt the Federal Reserve’s exploration of a digital dollar.

crypthub

1/24/2025, 11:50:43 AM

The US House Approves Digital Dollar Legislation

On Thursday, the US House made a significant move by passing legislation that mandates congressional approval for the Federal Reserve to issue a digital dollar. Dubbed the CBDC Anti-Surveillance State Act (HR 5403), the bill was approved with a substantial majority of 216 votes in favor to 192 against, fueled by Republican concerns over potential government control over citizens' finances.

Republican Anxieties and Opposition

The House vote reflects ongoing worries among Republicans, including former President Trump, regarding the scope for government overreach associated with a US digital dollar. Tom Emmer, the House Majority Whip from Minnesota, argued that such a currency could serve as a surveillance tool, enabling the government to track transactions and curb activities deemed politically undesirable. Trump has been vocal in his opposition to a Central Bank Digital Currency (CBDC), promising to block its creation if re-elected.

Contrast with Crypto Market Regulation Bill

The Thursday vote stands in contrast to the previous day's session, when another significant bill passed the House, focused on crypto market regulation. The Financial Innovation and Technology for the 21st Century Act (FIT21) establishes a new regulatory framework for the cryptocurrency market, strengthening the Commodity Futures Trading Commission's control over digital assets in spot markets and outlining the Securities and Exchange Commission's approach to the sector.

Challenges Ahead for FIT21

While the FIT21 bill was celebrated within the crypto industry, it faces significant challenges. Alan Mittleman, COO of Secure Digital Markets, noted that a companion version must be approved by the Senate for the bill to become law. This process will require substantial revisions and could face opposition from prominent crypto critics like Senator Elizabeth Warren, raising doubts about the bill's ultimate fate. President Joe Biden has also expressed concerns over consumer protection measures in the current version.