U.S. House Considers Legislative Strategy to Block Federal Reserve's CBDC

According to Cointelegraph, the U.S. House of Representatives is exploring a legislative strategy to prevent the Federal Reserve from issuing a central bank digital currency (CBDC). This approach involves integrating the Anti-CBDC Surveillance State Act into the Digital Asset Market Clarity Act, a market structure bill passed in July. The proposal was discussed during a House Rules Committee hearing, where a draft agenda suggested adding the CBDC bill to the final version of the market structure bill, which will be sent to the Senate for consideration. House Republicans had previously considered a similar strategy during a July vote on the GENIUS Act, a bill aimed at regulating payment stablecoins. Some lawmakers sought to include a CBDC ban in the stablecoin bill, which delayed its passage before the August recess. Despite these challenges, all three bills eventually passed with bipartisan support. However, it remains uncertain whether the combined House bill, which includes a market structure and CBDC ban, will influence the Senate's legislative process. In the Senate, Republicans on the Banking Committee have developed their version of the market structure legislation, known as the Responsible Financial Innovation Act. This bill builds on the CLARITY Act but is distinct in its approach. Wyoming Senator Cynthia Lummis, a key supporter of the market structure bill, indicated that the banking committee aims to pass the legislation by the end of September. U.S. President Donald Trump may sign it into law by 2026, although no vote has been scheduled with the banking committee at the time of publication. Despite Republicans holding a slim majority in both the House and Senate, they may need Democratic support to pass the proposed market structure bill. Both parties have presented proposals to update regulatory requirements for the digital asset industry. However, Democrats have expressed concerns about what they perceive as President Trump's undermining of confidence in the digital asset sector, referencing his family's involvement in crypto ventures. It remains unclear whether Republicans plan to address Trump's connections to the industry through his family's mining venture, American Bitcoin, World Liberty Financial, and his personal memecoin in the bill. The bill is expected to proceed to a committee vote within two weeks.