House Panel Advances Bill to Block Federal Banks from Issuing CBDCs

The US House Financial Services Committee has taken a significant step towards preventing federal banks from using or issuing central bank digital currencies (CBDCs). During an April 2 committee session, lawmakers voted 27-22 in favor of advancing the CBDC Anti-Surveillance State Act. This bill was one of five considered during a markup hearing, where possible amendments were discussed. Additionally, lawmakers approved a bill regulating payment stablecoins, setting the stage for a full House vote.

Minnesota Representative Tom Emmer, the sponsor of the anti-CBDC bill, highlighted the bill's progress, noting that it had previously passed the House of Representatives by a vote of 216-192 in the last Congress. Emmer also mentioned that the current Congress has seen 114 cosponsors and support from a diverse range of groups, including the Independent Community Bankers Association, the American Bankers Association, Club for Growth, Heritage Action, and the Blockchain Association.

Many Republican lawmakers have expressed concerns about institutions like the Federal Reserve or the Treasury Department exploring CBDC development, often citing financial privacy issues. Rep. Emmer reintroduced the bill in March, framing it as an effort to codify an executive order from former US President Donald Trump into law. That order, signed on January 23, prohibited the establishment, issuance, circulation, and use of a CBDC in the United States.