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House to vote on combined cryptocurrency and anti-CBDC rules
House representatives are preparing for a vote on two major cryptocurrency bills. The Financial Innovation and Technology (FIT) for the 21st Century Act is an anti-Central Bank digital currency (CBDC) the bill, sponsored by Republican representatives, will be introduced in the last week of May.
As a result, this unity vote is a landmark event in the governance and outlook of digital assets in the United States.
The FIT for the 21st Century Act and the anti-CBDC law
The FIT for the 21st Century Act, also known as HR 4763, is a broad bill that aims to create a regulatory infrastructure around the cryptocurrency industry. It is suggested that supervisory duties be divided between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Fee (CFTC).
This legislation, passed by the House Financial Services Committee in July, aims to address the shift in digital assets and make market participants more transparent about it.
THE anti-CBDC bill, identified as H.R. 1122 and introduced by Majority Whip Tom Emmer (R-Minn.), seeks to primarily ban the Federal Reserve from issuing a digital currency to consumers. Emmer has criticized issues of privacy and government surveillance, arguing that the digital yuan will only exacerbate this problem.
The bill, however, was favorably introduced in committee in September and received support from conservatives concerned about a government-run digital currency.
Bipartisan challenges and legislative strategy
Merging the two bills into a single resolution is perceived as a tactical maneuver to simplify the discussion and voting process. However, this approach is associated with problems.
Whereas the FIT for the 21st Century Act has received some bipartisan support, EmmerThe anti-CBDC bill faced opposition from Democrats. No Democrats voted for the amendment to block CBDC in committee.
Republicans are using this unity vote to secure broader support in their camp. Among the groups that expressed concern about a CBDC were House conservatives, who wanted to ensure that the interests of such entities were respected by introducing the anti-CBDC bill. Therefore, the inclusion of this bill aims to win the votes of Republicans who may be reluctant to approve the cryptocurrency regulatory structure.
Potential impact on cryptocurrency legislation
The outcome of this joint vote will be one of the determinants of what comes next as a cryptocurrency regulation model in the United States. Financial Services Committee Chairman Patrick McHenry (RN. C.) is among the leaders who helped shape the FIT for the 21st Century Act.
The bill also includes provisions for the regulation of stablecoins and the protection of whistleblowers, however the final text is still uncertain. If the unified bills pass the House, they will face more scrutiny in the Senate, where bipartisan support will be vital.
Ongoing debate and considerations
The discussion of these bills reflects general questions about the position of digital currency and government control over it. According to a recent statement by Jerome Powell, the Fed will only issue central bank digital currency if authorized by it Congresswhich underlines the role of legislative action in this area.
At the same time, the bill has also been criticized by lawmakers such as Rep. Stephen Lynch (D-Mass.), the ranking Democrat on the House Financial Services Crypto Committee. Lynch defined the anti-CBDC invoice short-sighted, arguing that the United States should not ignore the rise of digital currencies in other countries.
Many other Democrats, including Lynch, worry that the addition of Emmer’s bill could alienate moderate Democrats who might have supported broader cryptocurrency regulation.
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