July 21, 2024
Think Tank Urges Congress to Halt CBDC Growth and Preserve Financial Freedoms
Policy & Regulation

Think Tank Urges Congress to Halt CBDC Growth and Preserve Financial Freedoms

According to a Washington D.C.-based think tank with significant influence over US policymaking, Congress has to step up efforts to stop the growth of CBDCs and protect financial freedoms.

The Competitive Enterprise Institute stated in a statement on Tuesday that legislation must be passed prohibiting the Fed from committing to any “pilot” or other projects involving the formation of a CBDC.

The “CBDC Anti-Surveillance State Act,” which seeks to prevent the Federal Reserve from supervising the creation of a CBDC, or Central Bank Digital Currency, will be put to a vote by the US House of Representatives on Wednesday.

The bill has received a great deal of support from prominent business advocates and significant political personalities, led by House Majority Whip Tom Emmer, R-MN.

Although smaller than other think tanks, CEI is influential in fields supporting personal and economic freedom. The 1984-founded organization advocates for limited government intervention and free-market ideals.

The CEI said on Tuesday that it had been crucial in helping Emmer strengthen the legislation to close any gaps that may have given the Federal Reserve a backdoor to issue a CBDC.

In its most recent report from April 2023, the Federal Reserve emphasized that it was still looking into the potential advantages and disadvantages of CBDCs. The Fed claims that a fundamental concern is if and how a CBDC might enhance the US payments system.

Emmer’s legislation serves as a metaphor for greater public and policy concern over CBDCs, which many believe could lead to the establishment of a surveillance state and restrict innovation.

Fewer than 16% of Americans support government-issued digital money, according to a May 31 Cato Institute poll.

According to the think tank, public opposition grows as people consider the dangers of CBDCs being used by the government to regulate or monitor how people manage their finances.

The CEI also expressed opposition to the SEC’s existing stance on cryptocurrencies and support for new legislative measures, including the Digital Dollar Prevention Act put forth by Rep. Alex Mooney, R-WV.

“Congress needs to stop the SEC’s ‘regulation by enforcement’ that deems privately issued cryptocurrencies ‘securities,’ even though they are vastly different from stocks and bonds,” CEI stated.

Gary Gensler, the chairman of the SEC, stated on Tuesday that his organization is taking aggressive action to safeguard consumers and will go before the House Financial Services Committee on September 27.

Industry leaders have persisted in raising concerns about the SEC’s practices, arguing that the organization has ignored due process, used its power arbitrarily, and departed from its prior interpretations of securities rules.

Image: Unsplash

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