Key Takeaways
Who led the CBDC ban, and how did it pass?
Rep. Tom Emmer (R-Minn.) led the CBDC ban, which passed in July along party lines.
Why did House leaders initially attach the CBDC ban to the defense bill?
To satisfy GOP hardliners, who wanted protections against a digital dollar, though, Senate approval was unlikely.
The arrival of new U.S. crypto legislation has not only reshaped the domestic landscape but also influenced the global market, pushing sentiment toward a more pro-crypto stance.
Yet, concerns continue to hover over these developments.
Republicans’ proposal of the US CBDC ban
Against this backdrop, House Republicans are preparing to merge their proposal to ban a Federal Reserve-issued central bank digital currency (CBDC).
This would include a broader bipartisan crypto market structure bill, both of which cleared the chamber separately in July.
As expected, the U.S. House is set to vote on a procedural measure merging two crypto bills.
The bill includes both the Anti-CBDC Surveillance State Act, blocking a Federal Reserve digital currency, and the bipartisan CLARITY Act, which sets clearer rules for crypto tokens.
What happened earlier?
That being said, the CBDC ban, led by Rep. Tom Emmer, passed in July along party lines, while the CLARITY Act gained support from 78 Democrats.
The House Rules Committee confirmed the CBDC bill will be appended to the market structure legislation before going to the Senate.
Earlier this year, Republicans on the Financial Services and Agriculture Committees resisted merging the partisan CBDC bill with the bipartisan CLARITY Act, fearing it would hurt the bill’s chances in the Senate.
GOP hardliners, however, insisted that any crypto legislation must block a digital dollar.
House leaders first tried to attach the CBDC ban to the defense bill, but with Democrats opposed and Senate approval unlikely, Republicans are now pushing to fold it into the broader crypto market framework instead.
Spokesperson weighing in
Remarking on the same, spokesperson for House Financial Services Chair French Hill said in a statement,’
“Passing both the CLARITY Act and Anti-CBDC bill were key priorities for members of the House. By combining both measures and sending them to the Senate, the House continues to advance both priorities.”
Spokesperson, Brooke Nethercott, added,
“We stand ready to work with [Banking Chair Tim Scott] and Senator [Cynthia] Lummis on a pathway forward to get both provisions signed into law.”
Though Republicans control both chambers, they may still need Democratic support to pass the market structure bill.
Both parties proposed updates for digital asset oversight, but priorities differ.
Democrats raised concerns about Trump’s family crypto ventures, including American Bitcoin, World Liberty Financial, and his personal memecoin.
It’s unclear if Republicans will address these issues, though a committee vote is expected within two weeks.
Has a similar thing happened in the past?
For those unaware, similar tensions arose with the GENIUS Act, where some GOP lawmakers pushed to pair a stablecoin bill with a CBDC ban, briefly stalling progress.
Ultimately, the stablecoin bill, CBDC ban, and CLARITY Act passed with partial bipartisan support, highlighting the delicate balance in U.S. crypto regulation.
This coincided with the push by BRICS and other nations to adopt digital currencies, marking a calculated shift to reduce reliance on the U.S. dollar.
By trading directly in their own currencies, these countries aim to lower costs, sidestep U.S. sanctions, and reclaim financial autonomy, signaling a long-term challenge to America’s monetary dominance.