U.S. Rep. Patrick McHenry (R-NC), ranking member on the House Financial Services Committee, is among a group of Republicans asking U.S. Attorney General Merrick Garland to assess whether legislation is necessary for a U.S. Central Bank Digital Currency (CBDC).
Specifically, they asked Garland to detail the Department of Justice’s role in recent reports issued pursuant to the Executive Order on Ensuring Responsible Development in Digital Assets and to request a copy of the Department’s “assessment of whether legislative changes would be necessary to issue a CBDC” as required by the Executive Order.”
“We appreciate the efforts to examine the impact a U.S. Central Bank Digital Currency (CBDC) will have on the Federal Reserve and its monetary policy tools; potential risks to our existing payments system; private sector competition and innovation; and the impact on American’s privacy, civil liberties, and security. However, the appropriate place for the discussion on whether authorizing legislation is necessary is in the legislative branch,” McHenry, along with Rep. French Hill (R-AR) and other Republicans on the Financial Services Committee, wrote in a letter to Garland.
They said the committee has spent considerable time examining the potential risks and benefits of a CBDC and analyzed whether the Federal Reserve has the authority to issue a CBDC without authorizing legislation.
“Committee Republicans emphasized in our CBDC principles that the Federal Reserve does not have the legal authority to issue a CBDC absent action from Congress. Both Federal Reserve Chair Powell and Vice Chair Lael Brainard have also testified on the need for authorizing legislation,” the Republicans added.
They asked for Garlandʻs feedback by Oct. 15.