In a landmark decision, the US Congress has enacted the 21st Century ROAD to Housing Act, placing a moratorium on the Federal Reserve's ability to issue a central bank digital currency (CBDC) until 2030. This move reflects growing concerns over digital currency regulation and privacy standards, as emphasized in the official statement.
New Legislation on Digital Currency Issuance
The legislation, which received Senate approval in June and took effect on July 11, mandates that any future issuance of digital currency by the Federal Reserve will require explicit authorization from Congress. This requirement aims to ensure that any digital currency aligns with established privacy and regulatory frameworks, addressing potential risks associated with digital financial systems.
Impact on Stablecoin Issuers
Importantly, the new law does not impact stablecoin issuers, allowing them to continue their operations without restrictions. This distinction highlights Congress's intent to foster innovation in the stablecoin sector while maintaining a cautious approach towards central bank digital currencies.
Recently, President Donald Trump emphasized the need for Congress to support the Clarity Act, which aims to establish clearer regulations for digital assets in the U.S. This call for legislative clarity contrasts with the recent moratorium on the Federal Reserve's digital currency issuance. For more details, see read more.
