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Senators introduce legislation to challenge digital dollar plans

TL;DR

  • Five US senators oppose Biden’s digital dollar plan with new legislation.
  • US House Committee backs resolution for banks to custody crypto, protecting consumers.
  • Indonesia rethinks crypto taxes due to its growing role in the economy.

Five United States senators have united to oppose President Joe Biden’s proposed digital dollar initiative. Senators Ted Cruz, Bill Hagerty, Rick Scott, Ted Budd, and Mike Braun have jointly introduced legislation to ban central bank digital currencies (CBDCs). The proposed bill, titled the CBDC Anti-Surveillance State Act, directly challenges the authority of the Federal Reserve to implement a digital currency.

Pushback against the Federal Reserve’s authority

The introduced legislation explicitly challenges the Federal Reserve’s authority to offer certain products or services directly to individuals. It seeks to prohibit using central bank digital currencies for monetary policy purposes. The senators behind the bill argue that such measures are necessary to prevent the potential surveillance implications associated with CBDCs.

In a separate development, the U.S. House Financial Services Committee (HSFC) has voted in favor of a resolution to overturn a guideline issued by the U.S. Securities and Exchange Commission (SEC) regarding crypto custody. 

The guideline, Staff Accounting Bulletin No. 121 (SAB 121), has restricted banks from engaging in crypto custody by requiring them to record crypto holdings as liabilities on their balance sheets.

Resolution to remove roadblocks

The resolution passed by the HSFC seeks to overturn SAB 121, intending to allow highly regulated banks to act as custodians of digital assets. According to the committee, removing these regulatory obstacles will better protect consumers and facilitate the participation of traditional financial institutions in the crypto space.

SEC Commissioner Hester Peirce, widely known as “Crypto Mom,” has emphasized the importance of decentralization in the financial system. Speaking at the Denver conference, Peirce highlighted the resilience and strength that decentralization brings. She underscored the need for softer regulation, suggesting that the United States should embrace a less centralized approach to crypto regulation.

Peirce also addressed various crypto-related topics, including the potential for spot Bitcoin exchange-traded funds (ETFs), the implications of CBDCs, and concerns surrounding state financial surveillance. Her remarks signal a growing acknowledgment within regulatory circles of the benefits of decentralization in fostering innovation and resilience in the financial sector.

Indonesia reconsiders cryptocurrency taxation

Meanwhile, Indonesia’s Commodity Futures Trading Regulatory Agency (Bappebti) has requested a review of the nation’s cryptocurrency taxation policies. Executive staff members at Bappebti have urged the Ministry of Finance to reassess the existing value-added tax and income tax imposed on crypto transactions. The move comes as crypto increasingly becomes a significant aspect of Indonesia’s economy.

Tirta Karma Senjaya, head of the Bureau of Market Development and Development at Bappebti, emphasized the need for an annual review of crypto tax laws. Despite generating approximately $2.49 million in government revenue from crypto

taxes in January alone, Senjaya highlighted the importance of ensuring that these tax policies remain aligned with the evolving landscape of digital assets.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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James Kinoti

A crypto enthusiast, James finds pleasure in sharing knowledge on fintech, cryptocurrency as well as blockchain and frontier technologies. The latest innovations in the crypto industry, crypto gaming, AI, blockchain technology, and other technologies are his preoccupation. His mission: be on track with transformative applications in various industries.

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