WASHINGTON — A group of Republicans on the House Financial Services Committee have asked Attorney General Merrick Garland for the Department of Justice's analysis on legislation to create a central bank digital currency.
The lawmakers, led by House Financial Services Committee ranking member Patrick McHenry, R-N.C., and Rep. French Hill, R-Ark., along with all the members of the Committee Republicans' Digital Asset Working Group, said that despite President Biden's executive order that asks the Department of Justice to consider whether legislative changes would be necessary for creating a CBDC, the power to coin money is "exclusive" to Congress.
"The appropriate place for the discussion on whether authorizing legislation is necessary, is in the legislative branch," the lawmakers said in the letter.
Biden's sweeping executive order asked a number of government agencies to study various aspects of digital assets, including whether it would be appropriate to create a CBDC. The Federal Reserve has said that it's studying the issue.
The central bank, the lawmakers argue in their letter, cannot issue a CBDC without legislation from Congress. While Republicans are currently in the minority, they are
"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," the House Financial Services Committee Republicans said. "Both Federal Reserve Chair Powell and Vice Chair Lael Brainard have also testified on the need for authorizing legislation."
The Republicans ask for the Justice Department's assessment and "any corresponding legislative proposal" by Oct. 15.
