In July of last year, US President Donald Trump signed the GENIUS Act, a “landmark” cryptocurrency law, into law during a live broadcast. This marked the first comprehensive law passed in the US concerning the cryptocurrency market.
The law introduces framework rules for issuers of stablecoins.
Now, as the US Congress continues its efforts to pass another important piece of legislation, the CLARITY bill, which regulates the cryptocurrency market, a move to ban cryptocurrency has come from the US.
Accordingly, the housing bill introduced in the US includes a ban on CBDCs.
According to Eleanor Terrett, host of the Crypto in America program, the bipartisan Housing Bill being passed by the Senate Banking Committee includes a provision prohibiting the Fed from issuing CBDCs.
A provision prohibiting the Federal Reserve from issuing a CBDC was recently added to the “21st Century Housing Pathway Act,” a bill announced by Republican members of the US Senate Banking Committee.
“…The Board of Governors of the Federal Reserve System, or a Federal Reserve bank, a financial institution, or any other intermediary entity, may not issue or create, directly or indirectly, a central bank digital currency or any digital asset substantially similar to a central bank digital currency.”
Terrett stated that the CBDC ban clause was actually removed from the draft last year but has now been brought up again.
He also added that the CBDC ban in the current bill is designed to end in 2030.
*This is not investment advice.