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
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Author
Aaryamann Shrivastava
FXStreet
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.
