2024: Fitzpatrick Voted To Prohibit The Federal Reserve From
Implementing A Central Bank Digital Currency Or A Similar Digital Asset
Without Congressional Approval. In May 2024, Fitzpatrick voted for ,
according to Congressional Quarterly, "the bill that would generally
prohibit the Federal Reserve from issuing a central bank digital
currency (CBDC), also known as a 'digital dollar,' either directly or
indirectly to individuals, or from using any substantially similar
digital asset to implement Fed monetary policy. It would prohibit the
Fed from offering any products or services directly to an individual or
maintaining an account on behalf of an individual, in particular a CBDC.
It would stipulate that no similar digital asset could be offered by the
Fed to individuals indirectly through a financial institution or other
intermediary. It also would prohibit the Fed from issuing a CBDC without
congressional approval, and the Treasury Department from directing the
Fed to issue a CBDC without congressional approval. The bill's
restrictions would not apply to 'any dollar-denominated currency that is
open, permissionless, and private, and fully preserves the privacy
protections of United States coins and physical currency.' As amended,
it would prohibit the Fed from designing, building, developing or
establishing a central bank digital currency unless otherwise authorized
by Congress. It also would prohibit the Fed from carrying out a program
to test the practicability of issuing such a digital currency." The vote
was on passage. The House passed the bill by a vote of 216 to 192.
[House Vote 230,
5/23/24; Congressional
Quarterly, 5/23/24;
Congressional Actions, H.R.
5403]
Democrats Worried The Bill Would Put The United States Behind
Other Countries Developing A Digital Currency And Would Impede U.S.
Research On Digital Currencies. According to Congressional
Quarterly, "Ranking member Maxine Waters of California and other
Democrats criticized the legislation, saying it would cause the U.S.
to fall behind other countries moving forward in their consideration
of a central bank digital currency and could threaten the dollar's
position as the world reserve currency. 'We have learned that a CBDC
has the potential to improve our payment system, including the
ability to make quicker and safer cross border payments between
institutions,' Waters said. 'However, I recognize that there are
still several challenges that we must continue to explore, including
with regard to consumer protection, national security, and financial
inclusion.' The bill would have a chilling effect on research into
those challenges, Waters said. 'It may ultimately restrict the Fed
and Treasury from continuing their important research and testing.
This bill would unnecessarily hinder innovation before we've had a
chance to fully explore CBDCs' potential benefits and challenges,'
Waters said." [Congressional Quarterly,
9/20/23]
Republicans Stated The Bill Was Needed To Protect Privacy,
Individual Sovereignty, And Free Market Competitiveness. According
to Congressional Quarterly, "'My bill ensures the United States
digital currency policy is in the hands of the American people, not
the administrative state, so that it reflects our American values of
privacy, individual sovereignty, and free market competitiveness,'
said House Majority Whip Tom Emmer, R-Minn., who introduced the
legislation." [Congressional Quarterly,
9/20/23]
2024: Fitzpatrick Voted To Prohibit The Federal Reserve From
Implementing A Central Bank Digital Currency And To Prohibit The
Treasury Department To Direct The Federal Reserve To Do So. In May
2024, Fitzpatrick voted for , according to Congressional Quarterly,
"amendment no. 3 that would prohibit the Federal Reserve Board of
Governors from designing, building, developing, establishing or issuing
a central bank digital currency. It also would prohibit the Treasury
Department from directing the Federal Reserve Board of Governors for
carrying out any of those actions." The vote was on the amendment. The
House adopted the amendment by a vote of 212 to 195. [House Vote 229,
5/23/24; Congressional
Quarterly, 5/23/24;
Congressional Actions,
H.Amdt.926;
Congressional Actions, H.R.
5403]
2024: Fitzpatrick Voted Against Requiring Congressional Approval Prior
To The Federal Reserve Implementing A Central Bank Digital Currency.
In May 2024, Fitzpatrick voted against , according to Congressional
Quarterly, "amendment no. 2 that would prohibit the Federal Reserve
Board of Governors and Federal Reserve Banks from establishing, carrying
out or approving a program to test the practicability of issuing a
central bank digital currency, unless otherwise authorized by Congress."
The vote was on the amendment. The House adopted the amendment by a vote
of 206 to 193. [House Vote 228,
5/23/24; Congressional
Quarterly, 5/23/24;
Congressional Actions,
H.Amdt.925;
Congressional Actions, H.R.
5403]
2024: Fitzpatrick Voted To Prohibit The Federal Reserve From
Implementing A Central Bank Digital Currency. In May 2024, Fitzpatrick
voted for , according to Congressional Quarterly, "amendment no. 1 that
would express the sense of Congress that the Federal Reserve Board of
Governors should not be permitted to develop, create or implement a
central bank digital currency, or use any such tool to implement
monetary policy." The vote was on the amendment. The House adopted the
amendment by a vote of 204 to 106. [House Vote 227,
5/23/24; Congressional
Quarterly, 5/23/24;
Congressional Actions,
H.Amdt.924;
Congressional Actions, H.R.
5403]
2017: Fitzpatrick Voted For Legislation That Would Have Repealed
Significant Portions Of Dodd-Frank, Including Requiring The Federal
Reserve To Create A Mathematical Formula Dictating Policy. In June
2017, Fitzpatrick voted for the Financial Choice Act. According to NPR,
"House Republicans voted Thursday to deliver on their promise to repeal
Dodd-Frank --- the massive set of Wall Street regulations President
Barack Obama signed into law after the 2008 financial crisis. In a near
party-line vote, the House approved a bill, dubbed the Financial Choice
Act, which scales back or eliminates many of the post-crisis banking
rules." The vote was on passage. The House passed the bill by a vote of
233 to 186. The Senate took no substantive action on the legislation.
[House Vote 299, 6/8/17;
NPR,
6/8/17;
Congressional Actions, H.R.
10]
Legislation Required The Federal Reserve Create A Mathematical
Formula To Dictate Policy. According to Congressional Quarterly,
"The bill requires the FOMC to develop a mathematical rule --- the
Directive Policy Rule (DPR) --- to direct its decision making on
monetary policy to achieve its dual mandate. The DPR must provide a
strategy to achieve specified goals, identifying which interest rate
is targeted and describing the strategy for systematic adjustment of
the target through response to changes in inflation, estimates of
GDP, estimates of the monetary aggregate and any other variable that
the FOMC determines to be relevant. The DPR must state whether
variables used are historical, current or a forecast and must
include the method of calculating the variable. It must include a
mathematical function and a formula that predicts a range of future
values for the targeted interest rate based on changes to inflation,
GDP, the monetary aggregate and the other relevant variables, and
describe how bank reserves will be adjusted to achieve the target
interest rate. It must also include a calculation that describes
with mathematical precision the expected annual inflation rate over
a five-year period." [Congressional Quarterly,
6/7/17]
Legislation Reduced The Number Of "Stress Tests" On Large Banks.
According to Congressional Quarterly, "The bill directs the Fed to
reduce the frequency of 'stress tests' it conducts on banks with
assets of $50 billion or more to determine whether the banks have
sufficient capital to continue operations in times of economic and
financial stress --- providing that such tests be conducted every
two years rather than annually." [Congressional Quarterly,
6/7/17]