The House Financial Services Committee’s Republican members have asked the Department of Justice to provide an assessment and legislative proposal on a digital dollar within ten working days.
11 Republican legislators asked for a copy from the Justice Department in an Oct. 5 correspondence addressed to U.S. attorney general Merrick Garland. This was required by President Joe Biden’s March executive order regarding digital assets. Members of the House claimed that the appropriate place to discuss legislation relating to a central bank’s digital currency was in the U.S. legislative branches, rather than the federal executive departments.
The letter stated that the House Committee on Financial Services spent considerable time and resources studying both the risks and benefits of a CBDC. “The Committee has examined whether the Federal Reserve is authorized to issue a CBDC, without authorizing legislation.” The CBDC principles of the Committee Republicans emphasize that the Federal Reserve is not authorized to issue CBDCs without Congress’ approval.
#NEW: #PatrickMcHenry and @RepFrenchHill along with members of the Committee Republicans’ Digital Asset Working Group demand that Attorney General Garland give his assessment on @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 contained signatures by Patrick McHenry (ranking member) and Tom Emmer (representative), who have criticized the Treasury Department for its sanctions on crypto mixer Tornado Cash. Garland was requested to respond by the lawmakers by October 15.
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The White House published its September 16 report on a comprehensive framework to support cryptocurrencies in America, which included exploring the possibility of a CBDC. The Justice Department was charged with reporting on possible threats resulting from illicit use of digital assets and suggesting changes in laws and policies.