An active discussion in the U.S. Congress continues about what the future digital dollar should look like and who will be able to control its issuance. The Republican Party is promoting an initiative that aims to set clear boundaries for the Federal Reserve (Fed).
The authors of the document believe that #CBDC should not become a tool for state control and surveillance, but should resemble cash as much as possible.
The essence of the initiative against CBDC
The bill introduced by Republicans in the spring prohibits the Fed from issuing digital assets that are functionally similar to classic CBDCs. The document allows the development of a digital dollar only if it is 'open, anonymous, and permissionless'. This condition should guarantee users privacy in transactions comparable to cash usage.
Tom Emmer, the bill's author, emphasizes:
"If the Federal Reserve can make the digital dollar equivalent to cash in terms of freedom and privacy, it will have the right to issue it. But right now, this is impossible."
His position reflects growing concerns among Republicans that an uncontrolled CBDC could become a tool for monitoring citizens' financial transactions.
Progress in Congress
The bill against CBDC has become part of the so-called 'cryptocurrency week' in the House of Representatives. Three initiatives were approved in July:
GENIUS Act, regulating the issuance of stablecoins
CLARITY Act, aimed at creating a regulatory framework for cryptocurrency markets
Emmer's bill on the digital dollar
So far, only the GENIUS Act has been signed by President Donald Trump. Two other documents are under Senate consideration and will be discussed after the August recess.
Senate Priorities
The Senate plans to focus on the CLARITY Act as the most priority initiative. Republicans expect the law to be passed by October. Discussion of the digital dollar may be postponed until the fall session, although the topic generates significant interest among legislators and financial regulators.
Senator Cynthia Lummis, who oversees the subcommittee on digital assets, advocates for continuing work on crypto legislation even during the recess. She is also involved in the confirmation process for the CFTC chair candidate—Brian Quintez, known for his pro-cryptocurrency stance.
Political and Economic Context
The discussion about the digital dollar in the U.S. reflects a global trend. Many countries, including China and the European Union, are actively developing their CBDC projects. Republicans fear that a too rigid model of the digital dollar in the U.S. could disrupt the balance between innovation and citizens' rights.
Opponents of the law argue that without a national CBDC, the U.S. risks falling behind international competitors. Supporters of Emmer's initiative respond that the priority should remain on preserving users' privacy and financial independence.
What's next?
After the Senate returns from recess, the bills on market structure and CBDC will again be in the spotlight. Key debates are expected to unfold as early as September. The final decision could impact not only domestic U.S. policy on digital assets but also the dollar's position in the global economy.
