Gate News, March 10 — Investment bank TD Cowen stated that the U.S. Congress may be close to passing legislation to permanently ban the Federal Reserve from issuing Central Bank Digital Currencies (CBDC). This move could benefit stablecoin issuers but also introduce new complexities to the regulation of the crypto market structure.
Last week, U.S. Senator Ted Cruz proposed an amendment to the 21st Century ROAD to Housing Act, calling for a permanent ban on the Federal Reserve issuing CBDC. The amendment aims to turn the current temporary ban, valid until 2030, into a permanent regulation. The housing bill is expected to be submitted to the Senate for a vote as early as this week.
Jaret Seiberg, Managing Director of Washington Research at TD Cowen, said that the final housing bill signed by the president is very likely to include this ban, with a higher chance of a permanent ban than a temporary one. Seiberg noted that the amendment mainly consolidates the current policy stance, as the Federal Reserve has repeatedly stated that it will not issue digital dollars without explicit congressional authorization.
Meanwhile, several U.S. lawmakers have recently jointly written to congressional leaders, urging a permanent ban on CBDC. Representative Ralph Norman stated that, unlike cash, CBDC could allow the government to track transactions and monitor individual spending, so a permanent ban is necessary to protect Americans’ privacy and freedoms.
It is worth noting that the U.S. House of Representatives passed the Anti-CBDC Surveillance State Act last year, which prohibits the Federal Reserve from directly issuing CBDC to individuals. Cruz has also been pushing for similar legislation in the Senate.
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