House Committee Approves CBDC Anti-Surveillance State Act Amid Privacy Concerns

According to ShibDaily, the House Committee on Financial Services, chaired by French Hill (AR-02), has approved the CBDC Anti-Surveillance State Act along with other significant legislation during a full committee markup session. The CBDC Anti-Surveillance State Act narrowly passed with a 27-22 vote, aiming to prevent the Federal Reserve from issuing a digital dollar due to concerns over financial surveillance and the central bank's potential role as a retail banking entity. The bill prohibits the Federal Reserve System from deploying a Central Bank Digital Currency (CBDC) through intermediaries and restricts the use of digital currency for monetary policy purposes. Rep. Tom Emmer (R-MN), the bill's sponsor, emphasized the importance of avoiding government involvement in financial surveillance tools, contrasting decentralized cryptocurrencies like Bitcoin with CBDCs, which are managed by central banks. Emmer stated that a CBDC could become government-controlled programmable money, potentially allowing the federal government to surveil Americans' transactions and restrict politically unpopular activities. During the markup session, other key legislation, including the STABLE Act, the 1071 Repeal to Protect Small Business Lending Act, and the Promoting New Bank Formation Act, also received approval. Rep. Bryan Steil, who sponsored the STABLE Act, highlighted the bill's role in shaping future digital asset regulations and safeguarding the financial system's integrity. He noted that the bill establishes a comprehensive framework for the issuance and operation of dollar-denominated payment stablecoins in the United States, addressing the fragmented regulatory environment businesses currently face. The bill imposes strict reserve requirements to ensure stability and consumer protection. The approval of the CBDC Anti-Surveillance State Act by the House Committee reflects lawmakers' hesitance toward Central Bank Digital Currencies (CBDCs). Legislators have expressed concerns that CBDCs could undermine the financial system and infringe on individual privacy. Critics argue that a government-controlled digital currency may lead to increased surveillance and a loss of consumer choice, potentially disrupting the balance of power in the banking sector. Some fear that a central digital currency may diminish competition and ultimately harm consumers. Legislation like the CBDC Anti-Surveillance State Act seeks to offer alternative solutions to safeguard both innovation and consumer rights.