US Lawmakers Strike Back: Bold Move to Block Central Bank Digital Currency!

House Committee Passes Groundbreaking Bill

In a thrilling twist, US lawmakers have just thrown down the gauntlet against the creation of a central bank digital currency. On April 2, the US House Financial Services Committee passed the CBDC Anti-Surveillance State Act (H.R. 1919) with a razor-thin 27-22 vote. The tension was palpable!

Tom Emmer's Crusade Against the Fed

This game-changing bill, spearheaded by Minnesota's own Representative Tom Emmer, is a direct shot at the Federal Reserve. It's a no-holds-barred attempt to stop them from issuing or managing a digital dollar. Not only that, but it also blocks the Fed from sneaking a CBDC through intermediaries or using it to play puppet master with monetary policy. Emmer's not messing around!

The Battle Against Big Brother

Supporters of the bill are sounding the alarm, warning that a state-controlled digital currency could turn into a surveillance nightmare, giving the government way too much power over our wallets. It's like something straight out of a dystopian thriller!

Emmer's Dire Warning

Emmer, who's been on the front lines of the anti-CBDC fight, is pulling no punches. He's calling a CBDC "government-controlled programmable money" that could be used to choke out unpopular activities and track every single transaction in real-time. In an April 3 press release, he laid it all out: "A CBDC is government-controlled programmable money that, if designed without privacy protections of cash, could give the federal government unilateral authority to surveil Americans' transactions and restrict politically unpopular activity."

A Groundswell of Support

The bill's got some serious backing, with 114 co-sponsors and heavy hitters like the American Bankers Association and the Blockchain Association jumping on board. It's even tied to a former presidential executive order that aimed to slam the door on CBDC development for good.

Trump's Oval Office Showdown

In a jaw-dropping moment, former President Donald Trump took to the Oval Office on January 23 to unveil an executive order that put the kibosh on the development and use of a US CBDC. He also proposed a federal working group to tackle stablecoin regulations, making good on his campaign promise to block CBDCs if he got another shot at the White House.

Emmer's Previous Salvo

This isn't Emmer's first rodeo. He previously introduced his anti-CBDC bill, H.R. 5403, back in 2023. It made it through both the House Financial Services Committee and a full House vote in 2024, but the Senate never got a chance to weigh in before the 118th Congress called it quits in January.

Stablecoins in the Crosshairs

But wait, there's more! Congress is also juggling two other bills that could shake up the stablecoin world. On April 2, the House Financial Services Committee passed the Stablecoin Transparency and Accountability for a Better Ledger Economy Act with a 32-17 vote. This one's all about bringing some much-needed clarity to the wild west of stablecoins, including heavyweights like USDT and USDC.

The Senate's Stablecoin Showdown

Over in the Senate, lawmakers are putting the GENIUS Act, introduced by Senator Bill Hagerty, under the microscope. This proposal lays out a federal framework for stablecoin issuers, covering everything from licensing to reserves, audits, and transparency. It just made it through the Senate Banking Committee with an 18-6 vote, and the stakes couldn't be higher!