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 fr

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Author: Ishika Kumari