House Republicans have moved to tie a bill that blocks the Federal Reserve from issuing a central bank digital currency with the CLARITY Act, a major bipartisan proposal that outlines new rules for cryptocurrency markets.
The chamber voted on September 26 to approve a procedural step that links the two bills, both of which had already cleared the House in July. The move reflects the GOP’s determination to stop the idea of a U.S. digital dollar while also advancing market structure reforms.
Background on Earlier Votes
Back in July, lawmakers voted 215-211 to advance three key measures, namely the GENIUS stablecoin bill, the Digital Asset Market Clarity Act, and the Anti-CBDC Act. The Anti-CBDC Act was authored by House Majority Whip Tom Emmer and passed with strong Republican backing but little Democratic support.
The vote highlighted GOP concerns that a central bank digital currency could give the federal government too much control and allow closer monitoring of Americans’ financial activity.
The CLARITY Act, on the other hand, drew a more bipartisan response. It sets out to clearly define which digital assets fall under the jurisdiction of the SEC and which should be regulated by the CFTC.
By doing so, it seeks to remove the uncertainty that has long clouded the industry. The bill passed with 78 Democrats joining Republicans, showing a broader consensus around clarifying the regulatory landscape.
Concerns Over Merging the Bills
Initially, committee leaders were hesitant to combine the two bills. They feared linking the controversial CBDC ban with the market structure reforms could reduce the Democratic support needed to push the CLARITY Act through.
Despite those concerns, pressure from hardline Republicans grew, and party leaders eventually opted to bring both measures together.
GOP leaders had previously attempted to tuck the CBDC ban into the annual National Defence Authorisation Act, but that plan collapsed after Democrats strongly resisted.
The latest manoeuvre suggests Republicans were unwilling to let go of their anti-CBDC priority. “Passing both the CLARITY Act and the Anti-CBDC bill were key priorities for members of the House,” said Brooke Nethercott, spokesperson for House Financial Services Chair French Hill.
“By combining both measures and sending them to the Senate, the House continues to advance both priorities.”
Challenges in the Senate
Despite the House action, the combined package faces a steep climb in the Senate. Senators Cynthia Lummis and Kirsten Gillibrand are leading their own effort to craft legislation that sets out oversight for digital assets.
Their proposal does not include a ban on a central bank digital currency. This leaves the House package at risk of being sidelined, with the Senate charting a separate path.
Some Senate Republicans are also divided on how far to go. Senator John Kennedy warned that the Banking Committee is not ready to advance broad crypto legislation, arguing it gives too much ground to the industry.
His scepticism contrasts with Chairman Tim Scott’s push to hold a markup in September following the House passage of the CLARITY Act. The split reflects deeper divisions within the GOP on how aggressively to move forward.
Broader Political Context
At the same time, Democrats have launched their own campaign to resist Republican-led crypto bills. The effort, dubbed “Anti-Crypto Corruption Week,” was announced by ranking members Maxine Waters and Stephen Lynch, who argue that the proposed measures tilt too far toward industry interests.
The decision to bundle the CBDC ban with the CLARITY Act highlights both the urgency and the fault lines in the ongoing debate over U.S. crypto policy.
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