Federal Reserve Seeks Clarity on Digital Currency Regulation

US Lawmakers Vote to Advance Anti-CBDC Bill

Washington D.C. – A bill aimed at preventing the creation of a central bank digital currency (CBDC) in the United States has taken a significant step forward. The House Committee on Financial Services voted to advance the bill, which would prohibit the Federal Reserve from issuing a CBDC, also known as a digital dollar.

The bill, titled the "Digital Asset Securities Framework Act," was introduced by Representative Tom Emmer (R-MN) and has the support of several other lawmakers. According to Emmer, the bill is designed to protect consumers and the financial system from the potential risks associated with a CBDC.

"We need to make sure that we're not creating a system that could lead to more financial instability, more financial crises, and more economic uncertainty," Emmer said in a statement. "This bill will help ensure that we're not moving forward with a digital dollar that could have unintended consequences."

The bill would prohibit the Federal Reserve from issuing a CBDC, and would also require the Fed to conduct a study on the potential risks and benefits of a CBDC before issuing one. The bill would also create a new regulatory framework for digital assets, which would be overseen by the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).

The vote to advance the bill was largely along party lines, with Republicans supporting the measure and Democrats opposing it. The bill is now expected to be considered by the full House of Representatives.

The move comes as the Federal Reserve and other central banks around the world are exploring the potential benefits and risks of issuing their own CBDCs. The idea of a digital dollar has been met with skepticism by some lawmakers, who argue that it could lead to a loss of financial privacy and increased government control over the financial system.