Advancing US Central Bank Digital Currency Proposal Amid Growing Bipartisan Disagreements
The U.S. House of Representatives is set to vote on a procedural measure that aims to merge two significant pieces of crypto legislation, reshaping the domestic landscape and influencing the global market.
The bill in question includes the Anti-CBDC Surveillance State Act, which blocks a Federal Reserve digital currency, and the bipartisan CLARITY Act, which sets clearer rules for crypto tokens. The CLARITY Act gained support from 78 Democrats in July, while the CBDC ban, led by Rep. Tom Emmer (R-Minn.), passed along party lines.
Initially, the CBDC ban was attached to the defense bill to satisfy GOP hardliners, who have insisted that any crypto legislation must block a digital dollar. However, recent developments suggest a shift in strategy, with House leaders now pushing to fold the CBDC ban into the broader crypto market framework instead of attaching it to the defense bill.
The push for the merger of these bills comes as concerns continue to hover over the potential impact of new U.S. crypto legislation. Democrats have raised concerns about Trump's family crypto ventures, including American Bitcoin, World Liberty Financial, and his personal memecoin. Meanwhile, the arrival of new U.S. crypto legislation has also influenced the global market, pushing sentiment toward a more pro-crypto stance.
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. However, the current push for merger indicates a newfound cooperation between the two parties in addressing the complexities of crypto regulations.
The push by BRICS and other nations to adopt digital currencies marks 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, signalling a long-term challenge to America's monetary dominance.
Similar tensions arose with the GENIUS Act, where some GOP lawmakers pushed to pair a stablecoin bill with a CBDC ban, briefly stalling progress. It remains unclear if Republicans will address these issues, though a committee vote is expected within two weeks.
Spokesperson Brooke Nethercott, for House Financial Services Chair French Hill, stated that passing both the CLARITY Act and Anti-CBDC bill are key priorities. Nethercott added that they are ready to work with Banking Chair Tim Scott and Senator Cynthia Lummis on a pathway forward to get both provisions signed into law.
As these developments unfold, it is clear that the future of crypto regulations in the U.S. is taking shape, with a potential impact on the global market and the world's monetary order.
