|

US House Committee passes bill to prevent issuance of CBDC

  • The US House Financial Services Committee passed the “CBDC Anti-Surveillance State Act”.
  • According to the act, the Federal Reserve would be prevented from issuing a Central Bank Digital Currency.
  • Digital Ledger Technology (DLT) adoption has been an issue as well, owing to the lack of regulation.

The United States is a landmine of regulatory trouble for the crypto space, but the technology behind it was being pursued for adoption. However, the application of this technology is also being objected to by many, attempting to end things before they even begin.

Read more - US Federal Reserve keeps interest rates unchanged, Bitcoin price floats above $27,000

No CBDC for the US

The United States House Financial Services Committee (FSC) recently approved a bill that essentially bans the Federal Reserve from ever issuing a Central Bank Digital Currency (CBDC). It is the tokenized form of the fiat currency operating on the Digital Ledger Technology (DLT). These currencies are generally issued by the central bank, with some instances of outsourcing to different entities in the country.

CBDCs were strongly opposed by many US Congressmen, including the likes of Tom Emmer, who called digital currencies an issue of “privacy, individual sovereignty, and free market competitiveness.” As the bill will retroactively ban any future CBDC pilot, it may result in some drawbacks for the United States on this front.

However, the bill still has a chance of being shot down as it would now advance to the House of Representatives. Here, opposition to the bill in favor of the technological development of the country might result in delay, modification or even potential rejection of the bill.

Regulation continues to drag on

Crypto regulation in the country is a headache for many crypto industry players, and the lack of advancement in this field is testing the patience of the citizens. The first and the biggest issue resides in the discretion of the power of overseeing the regulations. 

The Securities and Exchange Commission (SEC) is consistently attempting to put itself forward using the regulation by-enforcement technique. However, the Commodities Futures Trading Commission (CFTC) has also been vocal about being the primary regulatory body of all things crypto. Since both agencies are following their own policies, the chaos has resulted in many companies, such as Coinbase, exiting the United States in preference of other countries.

Read more - US Judge denies SEC request to inspect Binance.US


Like this article? Help us with some feedback by answering this survey:


Author

Aaryamann Shrivastava

Aaryamann Shrivastava is a Cryptocurrency journalist and market analyst with over 1,000 articles under his name. Graduated with an Honours in Journalism, he has been part of the crypto industry for more than a year now.

More from Aaryamann Shrivastava
Share:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

Stellar Price Forecast: XLM slips below $0.22 as bearish momentum builds

Stellar (XLM) price is trading below $0.22 at the time of writing on Wednesday after failing to close above the key resistance earlier this week. Bearish momentum continues to strengthen, with open interest falling and short bets rising.

Pi Network Price Forecast: PI struggles to rebound amid muted demand

Pi Network (PI) edges higher by almost 1% at press time on Wednesday, bouncing off the $0.2000 level after a four-day decline. The recovery lacks momentum as the social interest surrounding Pi Network declines. Technically, PI is at a crossroads, struggling for a rebound as momentum is lacking.

Top 3 Price Prediction: Bitcoin, Ethereum, and Ripple face downside risks as breakout attempts falter

Bitcoin, Ethereum and Ripple continue to trade in red on Wednesday as recent breakout attempts lose momentum near key resistance levels. BTC failed to reclaim the $90,000, ETH slipped below $3,000, while XRP faced rejection near $1.96.

Top Crypto Losers: NIGHT, PUMP, TAO – Altcoins plunge just before the holidays

Midnight (NIGHT), Pump.fun (PUMP) and Bittensor (TAO) are leading losses over the last 24 hours as the broader cryptocurrency market declines. The altcoins under pressure risk further losses as the selling pressure rises just before the holidays.

Orange Juice Newsletter – Smart insights by real people. Every day.

A free newsletter highlighting key market trends to help traders stay a step ahead. Daily insights on the most relevant trading topics, compiled by our experts in an easy-to-read format so you never miss an important move.

Bitcoin: Fed delivers, yet fails to impress BTC traders

Bitcoin (BTC) continues de trade within the recent consolidation phase, hovering around $92,000 at the time of writing on Friday, as investors digest the Federal Reserve’s (Fed) cautious December rate cut and its implications for risk assets.