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Us considers cbdc ban bill
Us considers cbdc ban bill

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US House Looks at Market Structure Bill to Ban CBDCs by the Fed

The US House of Representatives may join a CBDC ban with the Digital Asset Market Clarity Act. This could limit the Federal Reserve’s ability to issue a central bank digital currency (CBDC). Lawmakers are looking for bipartisan ways to regulate the crypto market.

Bill to Combine CBDC Ban with Market Structure Legislation in the House

The US House of Representatives is working on a quick legislative route to stop the Federal Reserve from operating a central bank digital currency (CBDC). The House Rules Committee may combine two pieces of legislation that focus on digital asset clarity and opposing CBDCs in Monday’s hearing. The Anti-CBDC Surveillance State Act and Digital Asset Market Clarity Act were both passed in July.

The approach to engrossment would include the CBDC ban in the final version of the market structure bill before it gets to the US Senate, potentially expediting things.

Analysts keep saying that by combining stablecoins and CBDCs into a single bill, the House would be able to address both issues quite effectively.


Background: The Stablecoin and CBDC Projects

In July, House Republicans saw a similar move during the floor vote on the GENIUS Act focusing on payment stablecoins. Before the vote, a few lawmakers tried to make sure a CBDC ban was included, but it passed without it.

There is uncertainty over the effect of the combined bill and market structure legislation from the Senate – the Responsible Financial Innovation Act, which is a derivative of the CLARITY Act – on the House maneuver.

Also Read : Senator from Alabama Warns GENIUS Act Loophole Could Devastate Rural Banks


Senate Timeline and Bipartisan Considerations

The Senate Banking Committee plans to move forward in the next week or two. This is according to Wyoming Senator Cynthia Lummis, who is a major supporter of the bill. If it succeeds, President Donald Trump would be able to sign the measure into law by 2026; a committee vote has not yet been scheduled.

Republicans control both chambers, but their slim majorities may require Democratic support for passage. Democratic lawmakers have put forth new provisions that focus on what they term as Trump’s effect on confidence in the digital asset space. They point to family crypto schemes like American Bitcoin, World Liberty Financial, and personal memecoins.

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Alex
Formally freelance blogger Alex is passionate writer with interest in Finance and Business, fascinated about crypto following news and covering stories.
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