US House Committee Advances Anti-CBDC Legislation Amid Privacy Concerns
On April 2, 2025, the US House Financial Services Committee approved the CBDC Anti-Surveillance State Act with a 27-22 vote, advancing it to a full House vote. The bill, introduced by Representative Tom Emmer, seeks to prevent federal agencies, including the Federal Reserve, from issuing or using a digital dollar, with support from banking and blockchain sectors emphasizing privacy. Parallel efforts in the Senate by Senator Ted Cruz mirror concerns about governmental overreach and disruptions to traditional banking. Additionally, a stablecoin regulation bill is advancing, aiming to establish federal oversight and ensure compliance for issuers, signifying ongoing regulatory discussions that could impact digital currencies’ future in the US.
Bearish
The legislative move to block CBDCs in the US reflects growing concerns of privacy and government overreach, potentially limiting the adoption and development of CBDCs. This development may trigger apprehension among traders, affecting the overall sentiment in the market. In the short term, the legislative opposition might reduce interest in Fed-backed digital currencies, impacting market innovation potential negatively. However, the continued advancement of stablecoin regulations offers some hope for stability and a structured environment which could mitigate the bearish effects in the long term.