US Congressman Backs Stablecoin Legislation, Criticizes CBDC

On March 11, US Representative Tom Emmer spoke at a House Financial Services Committee hearing in support of legislation aimed at regulating stablecoins, while reiterating his criticism of the concept of a central bank digital currency (CBDC).

He described CBDC as a “threat to American values” and emphasized the need for legislation that would prohibit the issuance of a digital dollar without Congressional approval.

On March 6, Emmer reintroduced the relevant bill in Congress. He stated that passing the bill would prevent the future launch of a CBDC, thereby protecting the privacy and financial independence of US citizens.

“CBDC technology is inherently un-American,” Emmer declared.

Additionally, he emphasized that “stablecoins” could offer a safer alternative, enabling the integration of traditional finance into blockchain without compromising privacy.

At the same hearing, Paxos CEO Charles Cascarilla urged lawmakers to establish unified stablecoin regulations to avoid regulatory arbitrage. He argued that such measures would allow the US to strengthen its position in the global market and set high industry standards.

The discussion takes place amid the growing influence of cryptocurrencies on American politics. According to analysts from the Center for Political Accountability, crypto companies spent $134 million supporting candidates for the 2024 elections, raising concerns about potential regulatory destabilization.

Since 2021, Emmer has advocated for a digital dollar design that excludes the possibility of financial surveillance of citizens.

In February 2023, the congressman introduced the first version of the bill against CBDC, and in September 2023, he reintroduced the document.