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US House Committee

CBDC Battle Royale: Congress Divided Over Digital Currency

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CBDC: In a significant development in the world of digital currencies, the House Financial Services Committee has greenlit a bill designed to prevent the Federal Reserve from pursuing the creation of a US central bank digital currency. Introduced by US Congressman Tom Emmer, the bill aims to ban the Fed from initiating any CBDC pilot programs and seeks to forestall the introduction of a retail digital currency that could potentially infringe on citizen privacy and freedom.

Emmer passionately argues that the CBDC issue revolves around critical factors like privacy, individual sovereignty, and the preservation of free-market competitiveness. With the bill’s approval by the House Financial Services Committee, it is now poised to advance to the House of Representatives for further deliberation.

One key provision of this potential legislation is that any progress toward a government-backed digital token must be explicitly authorized by Congress. However, its prospects for approval in the House remain uncertain, and its fate in the Senate, where Democrats hold the majority, is even less clear. This political divide presents a challenge, as the bill was introduced by a Republican, and Democrats in the Senate may not be inclined to support it.

Rep. Maxine Waters, the top Democrat on the House Financial Services Committee, expressed her concerns about the bill and its potential impact on the US’s position in the global financial landscape. She contends that such a bill would hinder the US in its race with other countries, particularly China, to establish a global standard for central bank digital currencies.

Waters argues that it could impede research and development, potentially causing the US dollar to lose its status as the world’s reserve currency and depriving US citizens of the benefits of faster, cheaper, and simpler payment systems.

US CBDC Bill Stirs Controversy Amid Global Trend

The bill’s significance lies in the broader context of global CBDC initiatives. Many countries around the world have either embarked on or explored the creation of their own CBDCs, recognizing the potential benefits they offer in terms of financial inclusion, efficiency, and innovation. However, the United States has remained divided on the issue, with contrasting opinions within the crypto industry and among policymakers.

As the bill advances to the House of Representatives, it remains to be seen whether it will gain sufficient support to become law. The outcome will undoubtedly have a substantial impact on the future of CBDCs in the United States, shaping the nation’s stance on digital currency, privacy, and its competitiveness in the evolving global financial landscape. Ultimately, the decision will determine whether the US joins the ranks of nations embracing CBDCs or takes a different path in the digital currency revolution.

Crypto Rules Redefined: SEC and CFTC Unwind

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While crypto seems to be the talk of the town everywhere, a group of prominent Republican members from the US House of Representatives have introduced a new bill aimed at establishing a comprehensive regulatory framework for the crypto markets. This initiative comes on the heels of the recent XRP ruling, which has been perceived positively by many experts in the industry.

The primary goal of this legislation is to bring clarity to the process of registration with regulatory bodies such as the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Additionally, it seeks to address the classification of assets that were initially introduced as potential securities but have evolved into commodities over time. Determining whether an asset falls under the commodity or security category will be contingent on the degree of decentralization exhibited by its parent blockchain. Presently, the regulatory landscape surrounding crypto markets in the US remains ambiguous, making this new legislation a crucial step towards resolving these uncertainties.

The driving force behind this bill is House Agriculture Committee Chairman, Glenn Thompson, alongside Republican Representatives French Hill and Dusty Johnson. Garnering support from Financial Services Chair, Patrick McHenry of North Carolina, the legislation has already received substantial backing from influential figures.

According to Thompson, this legislative proposal represents a significant milestone for both the House Committees on Agriculture and Financial Services. Their joint efforts are focused on establishing a much-needed regulatory structure that can effectively safeguard consumers and investors within the crypto market.

Moreover, Thompson expressed optimism that the recent XRP ruling would encourage more Democrats to lend their support to this endeavor, enhancing its chances of success in the legislative process.

US Crypto Firms’ Choice: SEC Registration Simplified

Since its initial draft in June, the bill has undergone several revisions to address various concerns and issues. Notably, it introduced modifications to a previous rule pertaining to provisional registrations with the SEC or CFTC. Under the revised provisions, US crypto firms will have the option to submit a notice of intent to register with the regulatory agency, thereby avoiding enforcement proceedings related to registration or token listings.

Nonetheless, these firms will be required to adhere to strict regulations concerning the protection of customer assets and disclosure practices. Furthermore, any attempts at deceit or manipulation will continue to be subject to enforcement action from the authorities.

In conclusion, the introduction of this bill signifies a significant step forward in establishing a comprehensive regulatory framework for the crypto markets. Its proponents believe that the recent XRP ruling will lend support from across the aisle, demonstrating a bipartisan effort to address the complexities of the industry and provide greater clarity and security for consumers and investors alike.

“EPA Should Study the Benefits of Digital Assets Mining”- Says US House Committee

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-The EPA is requested in a letter from the US House Committee to investigate the possible advantages of mining digital assets. Patrick McHenry, the chairman of the House Financial Services Committee, US Senator Cynthia Lummis, and 12 other Republicans contributed to the letter’s creation.

In the letter, Michael Regan, the head of the Environmental Protection Agency, is urged to research the advantages and possibilities of mining digital assets. Before drawing a conclusion on environmental regulation, the research should take into account the advantages of mining.

The letter is regarded as a follow-up to a letter that some House members issued in April 2022. The message was poorly comprehended and didn’t accurately convey the information concerning crypto miners.

EPA should study the impact of digital assets on the US economy

‘The United States is the global leader in financial services and technology innovation. At a time of rapid technological change, we must affirm our commitment to responsible innovation to ensure future generations of Americans continue to enjoy prosperity and opportunity.”

The letter stated

The letter to the EPA included instances of several mines using natural gas as an alternate energy source. It also cited a few instances of mining companies that make an effort to have a good environmental impact.

According to the letter, as distributed ledger technology and digital assets gain popularity, other nations are embracing them quickly and luring significant quantities of talent and capital in an effort to expand their own financial services industries.

The letter also mentioned the importance of mining operations and digital assets to the growth of the American economy. The message prompts to concentrate on supporting and developing technologies that will benefit the nation.