House Committee Proposes Combining CBDC Ban with Market Structure Legislation
The US House of Representatives is exploring a legislative shortcut to prohibit the Federal Reserve from issuing a central bank digital currency (CBDC) by incorporating the Anti-CBDC Surveillance State Act into a broader market structure bill.
During a recent House Rules Committee hearing, a draft agenda indicated a proposal to append the CBDC ban, initially passed narrowly in July, to the Digital Asset Market Clarity Act, which the House also approved earlier. This engrossment approach would consolidate the two measures, expediting their transmission to the Senate for further consideration.
Legislative Context and Senate Dynamics
Previously, House Republicans contemplated a similar strategy concerning the GENIUS Act, focusing on stablecoin regulation, aiming to embed a CBDC ban explicitly. Although the three bills passed with some bipartisan backing, the impact of merging the CBDC ban with the market structure bill on Senate proceedings remains uncertain.
The Senate Banking Committee, led by Republicans, is advancing a separate but related framework called the Responsible Financial Innovation Act. This bill builds upon the CLARITY Act but differs in scope and title. Senator Cynthia Lummis of Wyoming, a prominent supporter, anticipates committee approval by late September, with potential presidential enactment by 2026. However, no vote date has been set yet.
Partisan Nuances and Regulatory Implications
Despite Republican control of both chambers, their slim majorities necessitate some Democratic collaboration to pass digital asset legislation. While both parties seek to clarify regulatory requirements, Democrats have introduced provisions addressing concerns over former President Donald Trump’s involvement in the crypto sector, referencing his family’s mining ventures and personal memecoin.
It remains unclear if the House bills explicitly tackle these issues. The combined market structure and CBDC ban bill is expected to move to committee votes within the next two weeks, marking a critical phase for US digital asset regulation.
FinOracleAI — Market View
The House’s move to integrate a retroactive CBDC ban into the market structure bill signals heightened legislative focus on digital asset regulation and Federal Reserve-issued digital currencies. This could tighten regulatory frameworks and restrict CBDC development, potentially impacting market innovation and Federal Reserve policy direction. However, divergence between House and Senate bills and the need for bipartisan support introduce legislative uncertainty.
Investors should monitor Senate committee actions and bipartisan negotiations closely, as these will determine the final regulatory landscape. The risk of delays or amendments remains high given the slim majorities and partisan sensitivities.
Impact: neutral
