The U.S. House of Representatives is exploring a streamlined legislative route to prohibit the Federal Reserve from implementing a central bank digital currency (CBDC) by potentially incorporating related provisions into an existing market structure bill that passed in July. During a recent hearing of the House Rules Committee, a draft agenda revealed plans to attach the text of the Anti-CBDC Surveillance State Act, which also received approval from the House earlier in July after a narrow vote, to the Digital Asset Market Clarity Act. This strategy aims to seamlessly integrate the CBDC prohibition into the final version of the market structure bill intended for Senate consideration.
Efforts to include a CBDC ban in legislation have been ongoing. Prior to a floor vote in July on the GENIUS Act, designed to regulate payment stablecoins, some House Republicans sought to explicitly include a CBDC ban, a move that risked delaying the bill’s passage just before the August recess. Despite the attempts to broaden the scope of the legislation, all three relevant bills eventually garnered bipartisan support.
As discussions progress, it remains uncertain whether the proposed House bill, which combines aspects of market structure with a CBDC prohibition, would influence the competing legislation being considered in the Senate. Members of the Senate Banking Committee noted that their version of the market structure legislation builds upon the earlier CLARITY Act, differentiating it as the Responsible Financial Innovation Act.
Senator Cynthia Lummis of Wyoming, a major advocate for the market structure initiative, indicated that the Senate Banking Committee aims to finalize the legislation by the end of September. There are aspirations that former President Donald Trump could sign the bill into law by 2026. However, as of now, no vote has been scheduled within the committee for deliberation.
Adding complexity to the legislative landscape, Senate Democrats have introduced their own framework for market structure. While Republicans control both chambers, their slim majorities may necessitate bipartisan support to advance the proposed market structure bill. Both parties have acknowledged the significance of updating regulatory mandates to provide clarity for the burgeoning digital asset sector. However, Democrats have raised concerns over provisions that they believe stem from Trump’s initiatives, which they claim undermine confidence within the digital asset industry—particularly in light of his family’s involvement in cryptocurrency ventures. Prior to the publication of this information, it remained unclear whether Republican lawmakers intended to include references to Trump’s ties to the industry within the bill. A committee vote is expected to take place within the next two weeks, as stakeholders continue to negotiate the terms of the legislation.
