Republican members of the House Financial Services Committee have asked the Justice Department to present its evaluation and legislative proposals on the digital dollar within ten days.
In an Oct. 5 letter to US Attorney General Merrick Garland, 11 Republican lawmakers asked the Justice Department for a copy of its “assessment of whether legislative changes would be necessary to issue a CBDC,” as required. President Biden’s March executive order on digital assets. Members of the House of Representatives asserted that the “proper venue for debate” on central bank digital currency legislation would be the US legislature and not the federal executive department.
“The House Financial Services Committee has devoted considerable time and resources to examining both the potential risks and benefits of a CBDC,” the letter says. “The Committee’s review has included analysis of whether the Federal Reserve has the authority to issue a CBDC without authorizing legislation. Committee Republicans emphasized in our CBDC principles that the Federal Reserve does not have the legal authority to issue a CBDC without a decision of Congress.
#NEW: @PatrickMcHenry, @RepFrenchHilland members of Committee Republicans’ Digital Asset Working Group are demanding Attorney General Garland provide his assessment on the @federalreserve‘s authority to issue a #CBDC.
Read the letter https://t.co/RW3k49587e pic.twitter.com/aSUrHy2CZB
— Financial Services GOP (@FinancialCmte) October 5, 2022
The letter included the signatures of Ranking Member Patrick McHenry, who recently made a virtual appearance at the Converge22 conference in San Francisco, and Rep. Tom Emmer, who has criticized Treasury Department sanctions on cryptocurrency mixer Tornado Cash. Lawmakers asked Garland to respond by Oct. 15.
On September 16, the White House published its report on a global framework for cryptocurrencies in the United States, which includes exploring a CBDC. The Department of Justice was tasked with reporting potential threats due to illicit uses of digital assets, suggesting policy and legal changes.
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