This week, the United States House of Representatives is voting on two pivotal crypto bills – the Central Bank Digital Currencies (CBDC) Anti-Surveillance Act (H.R. 5403) and the Securities Clarity Act (H.R. 4451) – both of which could change the face of US crypto regulation.
The CBDC Anti-Surveillance Act is designed to impose strict limitations on the Federal Reserve’s involvement with the CBDCs.
It states, “A Federal Reserve bank shall not offer a CBDC, or any digital asset that is substantially similar under any other name or label, indirectly to an individual through a financial institution or other intermediary.”
This week, the House will take up two of my landmark pieces of legislation.
-The CBDC Anti-Surveillance State Act
-The Securities Clarity ActThese bills will ensure the future of crypto is determined by the American people – not @POTUS and the Administrative State.
— Tom Emmer (@GOPMajorityWhip) May 18, 2024
The bill seeks to prevent the Federal Reserve from issuing CBDCs directly to individuals, thereby restricting its digital currency powers. This measure is apparently intended to protect citizens from potential financial surveillance and governmental overreach in the realm of digital currencies.
Meanwhile, the Securities Clarity Act—introduced in May 2023—would delineate and distinguish between the underlying investment contract that governs the actual issuance of the token and/or crypto asset itself and the token instrument.
According to Forbes, “This proposed legislation would state that even if an investment contract transaction (the offering) has taken place, the investment contract asset (the token) need not automatically become a security as a result.”
Both of these legislative measures aim to establish a clearer regulatory framework for digital assets and address concerns related to financial surveillance and government control.
Wide Reaching Implications for the US Crypto Regulation
The upcoming crypto bill decisions in the House of Representatives may have far-reaching implications for the crypto industry – especially the Central Bank Digital Currencies Anti-Surveillance Act.
By establishing clearer regulatory guidelines and protecting individual privacy, these bills could pave the way for increased adoption and integration of digital currencies into the mainstream financial system in the US.
Investors, policymakers, and industry participants will all be closely monitoring the vote results. The passage of these bills could mark a significant milestone in the evolution of digital currency regulation, setting a precedent for other countries to follow.
In a letter penned to Congress, the Americans for Tax Reforms (ATR) wrote, “Cryptocurrencies have been unlawfully vilified by the Securities and Exchange Commission (SEC). The securities enforcement agency has attempted to create false narratives to justify a political agenda.”
“Additionally, embracing distributed ledger technology (DLT), which is the decentralized bedrock unto which many cryptocurrencies are embedded, could revolutionize not just finance but also supply chain management, healthcare, and real estate,” said ATR, recommending DLT.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
