House Republicans want the Department of Justice’s position on CBDC
The proposal follows the publishing of a series of digital asset studies by the Biden administration and the Federal Reserve’s consideration of issuing a CBDC.
The House Financial Services Committee’s Republicans have demanded that the Department of Justice disclose its evaluation of a prospective central bank digital currency, the legislators stated on Wednesday.
Ranking Member Patrick McHenry, R-North Carolina, Rep. French Hill, R-Arkansas, and other senior members of the committee issued a letter to Attorney General Merrick Garland requesting his opinion on whether legislation is required for a CBDC.
The letter comes weeks after the Biden administration produced a series of digital asset assessments that, among other things, investigated the possibility of a central bank digital currency. The executive order issued by President Joe Biden that prompted the reports directed the Department of Justice to evaluate whether legislation is required to issue a CBDC.
The letter states, “We appreciate the efforts to investigate the effect of a U.S. Central Bank Digital Currency on the Federal Reserve and its monetary policy instruments; possible dangers to our present payments system; private sector competitiveness and innovation; and the impact on Americans’ privacy, civil rights, and security.” “However, the legislative branch is the proper setting for a debate over the need of enabling legislation.”
Republicans Ted Budd, Bill Huizenga (R-Wisconsin), Ann Wagner (R-Mo.), and Tom Emmer all signed on. Legislators requested that Garland deliver the Justice Department’s assessment of CBDC legislation by October 15.