WASHINGTON—A group of Republicans that includes Sens. Ted Cruz (R-TX), Bill Hagerty (R-TN), Rick Scott (R-FL), Ted Budd (R-NC) and Mike Braun (R-IN) has filed legislation to halt efforts by the Biden administration to issue a central bank digital currency (CBDC).
In a statement announcing the bill, Cruz issued a statement saying, “The Biden administration salivates at the thought of infringing on our freedom and intruding on the privacy of citizens to surveil their personal spending habits, which is why Congress must clarify that the Federal Reserve has no authority to implement a CBDC. I’m proud to lead the fight in the Senate to restrict the Federal Reserve’s exploration of and attempt to introduce a CBDC to the American economy.”
Added Hagerty in a statement, “From Operation Chokepoint to recent reports of political and religious profiling by FinCEN, it is clear that government bureaucrats have been far too willing to exploit the financial system to advance political agendas and target Americans. This bill blocks the issuance of a central bank digital currency, preventing CBDC from being used as a tool to surveil and violate Americans’ privacy.”
Backers of the new bill say the CBDC Anti-Surveillance State Act would:
- Prohibit the Federal Reserve from issuing a CBDC directly to anyone
- Ensure the Federal Reserve “can’t mobilize itself into a retail bank”
- Bar the Federal Reserve from issuing a CBDC indirectly to individuals through financial institutions or other third parties
- Prevent the Federal Reserve from using a CBDC as a tool to implement monetary policy and control the economy
- Require authorizing legislation from Congress for the issuance of any CBDC
Rep Recognizes CUs in Congressional Record
Separately, Rep. Brian Fitzpatrick (R-PA) recognized “the importance of credit unions in the financial services marketplace,” in a Congressional Record entry.
“As a long-time credit union member and supporter, I appreciate the difference between credit unions and banks,” Fitzpatrick stated. “Credit unions are not-for-profit financial cooperatives that are democratically controlled. Every member, regardless of how much they have in savings or loans at a credit union, has an equal voice and vote in the governance of their credit union,” he said, adding credit unions’ unique structure allows them “to act purely in the interest of members and provide outstanding member services.”
Fitzpatrick has introduced bipartisan bills this session with Rep. Vicente Gonzalez (D-TX) to exempt loans to veteran-owned businesses from the member business lending, and that would grant credit unions additional business lending and loan maturity flexibility, America’s Credit Unions noted.
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