U.S. Senate passes CBDC ban amendment: Digital dollar plans paused until 2030

The Central Bank Digital Currency (CBDC) ban amendment cleared the Senate, marking one of the key crypto regulatory updates this week. 

On the 12th of March, the U.S. Senate voted to include the CBDC ban amendment in the 21st Century Road to Housing Act. The amendment received broad bipartisan support and passed by an 89-10 vote. 

If the House passes it, it will effectively prohibit the Federal Reserve from issuing a CBDC or an alternative until 2030. Senator Ted Cruz had sought a permanent ban, but his proposed amendment failed, leaving the CBDC prohibition in effect until 2030.

SEC plans ‘narrow’ exemption for tokenized securities

Separately, the SEC has made a U-turn on suggested ‘blanket’ innovation exemptions for tokenized securities. 

In a recent statement, SEC Commissioner Hester Peirce highlighted that the agency will now focus on a ‘narrower’ vision.

However, the plans for DeFi exemption still face unresolved issues, as Peirce sought to understand how to handle P2P and intermediaries that don’t fall within the SEC’s current mandate. 

Previously, the agency planned a wide ‘blanket’ innovation exemption that would treat tokenized securities as an experiment and allow it to develop outside the current market oversight and regime.

However, a massive pushback from traditional players like Citadel Securities may have prompted the latest ‘narrow’ exemption vision.

The critics argued that DeFi platforms should be treated as traditional intermediaries and comply with all disclosure and other legal requirements when handling tokenized securities. 

CLARITY Act passage chance drops below 90%

Finally, the chance that the crypto market structure bill, the CLARITY Act, will become law this year has dropped to 56% from 78% levels seen in early March – A 22% drop in less than two weeks. 

The market repricing followed a series of spats between the White House and banks over the past few days, as a stablecoin yield deal with the crypto industry proved elusive. 

Source: Polymarket 

Additionally, the market’s expectation for the bill fell after Senate Majority Leader John Thune cast doubt on the April deadline. He stated,

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Final Summary

• The CBDC ban amendment passed the Senate hurdle with massive bipartisan support.  
• The chance of CLARITY Act passage dropped below 60% amid a standoff between the White House and banks on a stablecoin yield deal. 

Source: https://ambcrypto.com/u-s-senate-passes-cbdc-ban-amendment-digital-dollar-plans-paused-until-2030/