After delays in the United States Congress due to Republican concerns about the Central Bank's digital currency (CBDC), the United States House of Representatives finally passed three legislation on encrypted currency. At a meeting of the House of Representatives on Thursday, Members of Parliament passed the Digital Asset Market Clarity (CLATRITY) Bill by 294 votes to 134, which aims to create market structures for encrypted currency; the Guidance and Establishment of the State Stabilization Currency Innovation (GENIUS) Bill by 308 votes to 122; and the Counter-CBDC Surveillance Bill by 219 votes to 210.
Approximately 80 Democrats voted in favour of the CLARITY bill and over 100 voted for the GENIUS bill. These bills are expected to be passed before Congress enters its August recess.
The power of encrypted money, law, politics and government.
The Republican Party has called on its members to support these bills as part of their "encrypted currency week" - This is an endorsement of the intention of United States President Donald Trump to move quickly towards his encrypted monetary agenda. On Wednesday, however, a package bill, including the three bills, was put on hold for several hours owing to the insistence of some Republicans on banning the development of CBDC in the United States.
The industry's response was very positive, and many participants in the encrypted money industry praised the adoption of the three bills as an “winner” for the industry, although anti-CBDC legislation, with the least Democrat support, may still be a controversial party issue. Summer Mersinger, former member of the Commodity Futures Trading Committee and current CEO of the Block Chain Association, stated that the vote on the Anti-CBDC Control Status Bill demonstrated support for “privilegedness, market competition and personal financial freedom”.
California's representative Maxine Waters had previously called on all Democrats to oppose the three bills and, in response to Republican “encrypted currency week” branding, held a press conference on the “Anti-encrypted currency corruption week” and issued a statement warning the Trump government of possible corruption.
According to Waters on Thursday, “These encrypted currency bills proposed by the Republicans will create a huge loophole in our federal financial laws, exposing consumers and investors to risks, to name only for innovation. They will increase the risk of another costly financial crisis in the name of innovation, as did the crisis that led to the evaporation of trillions of dollars in wealth in 2008.”
Trump is reportedly planning to sign the GENIUS bill on Friday, provided that no changes are made to the bill after its adoption by the Senate in June. The CARITY and anti-CBDC bills will be submitted to the Senate for debate and possible amendments before returning to the House of Representatives or the Presidential desk.