In a strategic move, the U.S. House of Representatives is looking to streamline its legislative approach to prevent the Federal Reserve from launching a central bank digital currency (CBDC). During a recent hearing of the House Rules Committee, the agenda revealed plans to incorporate the text of the Anti-CBDC Surveillance State Act into the pre-existing Digital Asset Market Clarity Act, which has already passed through the House earlier this year.
This method, known as engrossment, would effectively merge the proposed CBDC prohibition bill with the current market structure legislation headed to the Senate for further consideration. The incorporation of the Anti-CBDC Surveillance State Act, which was approved by the House with a narrow margin, aims to solidify the legislative barrier against the development of a CBDC.
However, this is not the first instance of lawmakers attempting to address CBDC concerns alongside other digital currency regulations. Earlier in July, as the floor vote for the GENIUS Act—a bill aimed at regulating payment stablecoins—approached, some House Republicans proposed an amendment that would explicitly ban CBDCs. This proposal, however, faced delays, ultimately impacting the bill’s passage before the House’s August recess. Despite these challenges, all three bills, including the GENIUS Act, ultimately garnered bipartisan support.
As the legislative process moves forward, the implication of merging the House’s market structure bill with the CBDC ban on Senate proposals remains uncertain. Members of the Senate Banking Committee, which has been working on their own market structure legislation—dubbed the Responsible Financial Innovation Act—acknowledge that their bill builds upon the CLARITY Act but follows a distinct trajectory.
Among the support for the market structure bill, Wyoming Senator Cynthia Lummis, a vital proponent, indicated that the banking committee is aiming for the legislation to be passed by the end of September, with the possibility of it being signed into law by President Trump as early as 2026. However, at the time of reporting, no specific date for a vote in the banking committee had been established.
Meanwhile, Senate Democrats have proposed their framework for digital asset market structure, highlighting the need for regulatory clarity in a fast-evolving sector. While Republicans hold a slim majority in both the House and Senate, they may require input from Democrats to move the proposed legislation forward. The Democratic proposals include measures to mitigate the perceived erosion of confidence in the digital asset sector, which they attribute to former President Trump’s involvement in family-related crypto ventures.
Whether the Republicans will address these concerns or Trump’s affiliations with the crypto industry through family ventures—such as American Bitcoin and World Liberty Financial—remains an open question. The legislative landscape is shifting as the committee vote for the market structure bill looms closer, set to take place within the next two weeks.
