US lawmakers fight CBDC, advocate crypto custody for banks: Law Decoded
Five United States senators have joined hands to fight President Joe Biden’s plans to issue a “digital dollar.”
Five United States senators have joined hands to fight President Joe Biden’s plans to issue a “digital dollar” by co-signing legislation demanding a ban on central bank digital currencies (CBDCs). Senators Ted Cruz, Bill Hagerty, Rick Scott, Ted Budd and Mike Braun introduced the CBDC Anti-Surveillance State Act, challenging the Federal Reserve’s authority to implement a CBDC. The bill goes explicitly against the Federal Reserve’s authority “to offer certain products or services directly to an individual, to prohibit the use of central bank digital currency for monetary policy, and for other purposes.”
Meanwhile, the U.S. House Financial Services Committee (HSFC) has voted in favor of a resolution that seeks to overturn a U.S. Securities and Exchange Commission (SEC) guideline that has prevented banks from engaging in crypto custody. The SEC’s Staff Accounting Bulletin No. 121, introduced in March 2022, is a set of guidelines requiring institutions that custody crypto assets to record crypto holdings as liabilities on their balance sheets. “By overturning SAB 121, the Resolution will ensure consumers are protected by removing roadblocks that prevent highly regulated banks from acting as custodians of digital assets,” stated the HFSC in a press release.
Less centralization, softer regulation. According to SEC Commissioner Hester Peirce, that’s what the United States needs. Speaking at the ETHDenver conference, Peirce, also known as “Crypto Mom,” proclaimed that decentralization brings resilience and strength to the financial system. “The whole concept of decentralization stands very much in contrast to what we’re used to at the SEC,” she added. The SEC commissioner also spoke about a wide range of crypto-related topics, including the agency’s future following the U.S. presidential election later in 2024, spot Bitcoin exchange-traded funds (ETFs), CBDCs and the specter of state financial surveillance.
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