House to vote on combined crypto and anti-CBDC rules

House representatives are preparing to vote on two major cryptocurrency legislation bills. The Financial Innovation and Technology (FIT) Act for the 21st Century and an Anti-Central Bank Digital Currency (CBDC), sponsored by Republican representatives, will be debated the last week of May.

As a result, this unified vote constitutes a landmark event in the governance and prospects of digital assets in the United States.

The FIT Act for the 21st Century and the Anti-CBDC Bill

The FIT for the 21st Century Act, also known as HR 4763, is a broad bill that aims to create regulatory infrastructure around the cryptocurrency industry. He suggests dividing oversight duties between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).

This legislation, which was approved by the House Financial Services Committee in July, aims to combat the evolution of digital assets and make market participants more transparent about it.

THE anti-CBDC bill, identified as HR 1122 and introduced by Majority Whip Tom Emmer (R-Minn.), seeks to prohibit the Federal Reserve from issuing a digital currency to consumers in the first place. Emmer has criticized concerns about privacy and government surveillance, arguing that the digital yuan will only make this problem worse.

The bill, however, received a favorable opinion in committee in September and received the support of conservatives worried about a digital currency managed by the government.

Bipartisan Challenges and Legislative Strategy

Merging the two bills into a single resolution is seen as a tactical move aimed at simplifying the discussion and voting process. However, this approach is associated with problems.

While the FIT for the 21st Century Act has received some bipartisan support, AnnoyThe anti-CBDC bill faced opposition from Democrats. No Democrats voted for the amendment to block the CBDC in committee.

The Republicans are taking advantage of this unified vote to obtain broader support in their camp. Among the groups that expressed concerns about a CBDC were House conservatives, who wanted to ensure that the interests of these entities would be respected by introducing the anti-CBDC bill. Thus, the inclusion of this bill aims to win the votes of Republicans who might be reluctant to approve the crypto regulatory structure.

Potential impact on crypto legislation

The outcome of this combined vote will be one of the determinants of what follows as regulatory models for cryptocurrencies in the United States. Financial Services Committee Chairman Patrick McHenry (R-N.C.) is among the leaders instrumental in crafting the FIT Act for the 21st Century.

The bill also includes provisions to regulate stablecoin and protect whistleblowers. However, the final text is still uncertain. If the united bills pass the House, they will face further consideration in the Senate, where bipartisan support will be vital.

Ongoing debate and considerations

The discussion of these bills reflects general questions about the place of digital currency and government control over it. According to a recent statement from Jerome Powell, the Fed will only issue central bank digital currency if it is authorized by Congresswhich highlights the role of legislative action in this area.

Meanwhile, the bill has also been criticized by lawmakers such as Rep. Stephen Lynch (D-Mass.), the top Democrat on the House Financial Services crypto panel. Lynch called the anti-CBDC bill short-sighted, arguing that the United States should not ignore the rise of digital currencies in other countries.

Many other Democrats, including Lynch, worry that the addition of Emmer’s bill could alienate moderate Democrats who might have supported broader regulation of cryptocurrencies.

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Kelvin is a distinguished writer specializing in cryptography and finance, backed by a Bachelor of Actuarial Science. Known for his incisive analysis and insightful content, he is fluent in English and excels in in-depth research and on-time delivery.

The content presented may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.

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