In a landmark decision, the United States House of Representatives has voted to prohibit the Federal Reserve from issuing a Central Bank Digital Currency (CBDC) directly to citizens. The CBDC Anti-Surveillance State Act bill, introduced by Rep. Tom Emmer (R-MN), garnered significant support from 213 Republicans and 3 Democrats, resulting in a final tally of 262 'yea' to 192 'nay'. This move marks the third crypto-focused legislation approved by Congress this month, and has been widely celebrated by the online crypto community that advocates for trustless, decentralized currencies like Bitcoin.

The bill's passage is a significant victory for privacy and decentralization, as CBDCs are controlled and issued directly by central banks, and are often backed by or used as substitutes for a nation's fiat currency. In contrast, decentralized currencies like Bitcoin operate independently of central banks and governments, ensuring that transactions remain private and secure. The bill's supporters argue that it will prevent unelected bureaucrats from using CBDCs to surveil Americans, and ensure that the development of digital money reflects American values of privacy, individual sovereignty, and free market competitiveness.

Rep. Tom Emmer, a pro-crypto advocate, tweeted that his legislation ensures that the United States' digital currency policy remains in the hands of the American people, rather than being controlled by a central authority. He emphasized that any development of digital money must reflect American values of privacy, individual sovereignty, and free market competitiveness. Similarly, Rep. French Hill (R-AR) supported the bill, citing the dangers of central banks wielding too much power, and highlighting the example of Canadian Prime Minister Justin Trudeau freezing citizens' bank accounts who donated to anti-vaccine mandate protests in 2022.

Democrats, such as Financial Services Committee ranking member Maxine Waters (D-CA), opposed the bill, arguing that the United States could lead the world in issuing a CBDC that respects privacy, rather than allowing the digital yuan to gain dominance. However, supporters of the bill argue that a retail central bank digital currency is not necessary, as the private sector can capitalize on payment innovations, such as private sector payment stablecoins.

The passage of the CBDC Anti-Surveillance State Act bill follows the House's approval of the Financial Innovation and Technology for the 21st Century Act (FIT21) on Wednesday, which established clear rules on how cryptocurrencies and crypto companies should register with federal market regulators. While FIT21 received substantial bipartisan support, with 71 Democrats voting in favor, the CBDC Anti-Surveillance State Act bill was largely supported by Republicans.

In conclusion, the US House's decision to prohibit the Federal Reserve from issuing a CBDC directly to citizens is a significant victory for privacy and decentralization. The bill's supporters argue that it will prevent unelected bureaucrats from using CBDCs to surveil Americans, and ensure that the development of digital money reflects American values of privacy, individual sovereignty, and free market competitiveness. As the crypto landscape continues to evolve, this move marks an important step towards protecting the rights of citizens and promoting innovation in the digital currency space.