In short
- Gov. Ron DeSantis of Florida, an outspoken critic of government surveillance through CBDCs, could sign a bill that gives Florida the ability to independently regulate stablecoins.
- The legislation includes transaction monitoring requirements that mirror federal anti-money laundering rules that some libertarians have opposed.
- Senator Ted Cruz is among the CBDC skeptics who remain cautious, arguing that a temporary ban in a recently passed housing bill is insufficient.
Not long before Ron DeSantis started shaping In his bid for the 2024 Republican presidential nomination, Florida’s governor described a dystopian future looming on the horizon.
He warned that A central bank digital currencyor CBDC, could allow the federal government to inject “woke politics” into the daily lives of Americans – whether it means limiting gas purchases to combat climate change or monitoring individuals’ firearm purchases. At the time, he described the Biden administration’s attempts to investigate a CBDC as ominous.
Nearly three years after the governor stood behind a podium decrying “Big Brother’s Digital Dollar,” DeSantis appears poised to sign a bill that would create a regulatory framework for stablecoins in Florida, expanding the state’s control over digital assets. The legislation, Bill 314, was past unanimously by the Florida Senate on March 6.
By requiring companies issuing stablecoins in the Sunshine State to record transactions worth more than $10,000, the legislation parallels existing anti-money laundering regulations. However, it could also complicate DeSantis’ stance against possible government overreach.
Because the governor has not yet seen the bill in its final form, a spokesperson for DeSantis said Declutter Thursday that he cannot comment on potential conflicts. To be clear, DeSantis has not yet indicated whether he will sign the bill, which is one of the first efforts at the state level to enact rules that align with the federal GENIUS Act.
Nevertheless, it is becoming increasingly common for politicians to express concerns about CBDCs while supporting efforts at piecemeal surveillance and control, said Nicholas Anthony, a policy analyst at the Cato Institute, a libertarian think tank in Washington.
“It’s much harder to correct DeSantis’ case,” he said Declutter. “He has launched a campaign to stand up to ‘Big Brother’ and the federal government, but in this sense he is essentially handing them the keys to the castle.”
While stablecoins are issued by private companies like Circle on public networks like Ethereum, CBDCs are digital assets issued by governments to act as cash equivalents. Stablecoins in the US are often anchored to the dollar via cash and US Treasuries, while a CBDC would have the “full faith and credit” of the federal government.
While DeSantis warned about CBDCs in 2023, he signed a bill banning a “centralized digital dollar” in Florida. The US Senate last Thursday past a housing bill that would ban the creation of a CBDC until 2030, if the bill is ultimately signed into law by President Donald Trump — though there are potential obstacles to getting to that point.
Earlier this week, Florida State Senator Colleen Burton, who sponsored Bill 314, said this Declutter that lawmakers moved quickly to pass the legislation. She cited a July deadline for states to apply to independently regulate certain stablecoins.
“It is clear that we have to go to the federal government [and] work with them so that we have the ability to regulate stablecoins here,” she said. “One of the things we did was craft this bill in mind every step of the way, and we are not looking to have our application rejected.”
Declutter has reached out to Burton for further comment.
A green light would allow Florida’s Office of Financial Regulation (OFR) to become a primary regulator within state lines. That comes with the power to revoke licenses under circumstances related to regulatory compliance, financial reporting and criminal activity.
In 2022, the OFR published a paper on regulatory issues surrounding crypto, describing the seizure of digital assets as difficult due to the self-custodial nature of most crypto wallets. Companies like Circle have historically frozen stablecoins using a blacklist while working with law enforcement agencies to crack down on bad actors.
Declutter has contacted the OFR for comment.
“CBDCs create a lot of problems with financial supervision and control, but they don’t make the problems up out of thin air,” says Anthony van Cato. “It’s important to be sure [the public] know that there are other ways to do this.”
When it comes to the GENIUS Act, former U.S. Rep. Marjorie Taylor Greene (R-GA) said so-called on X in December that the legislation contains a provision that would allow the government to introduce a CBDC through a back door.
“I support crypto, but I will never support giving the government the ability to eliminate your ability to have full control over your money and to buy and sell,” she added.
Although DeSantis has joined other conservative figures like Trump and Senator Ted Cruz (R-TX) in speaking out against CBDCs, House Majority Whip Tom Emmer (R-MN) has been among the most vocal critics. He reintroduced last year, a bill to ban CBDCs.
On Thursday, Cruz concerns expressed that the restrictions on CBDCs included in the 21st Century ROAD to Housing Act were temporary, indicating that his fight is not over.
“It only pauses development until December 31, 2030,” he said in a press release. “My Anti-CBDC Act takes the right approach by permanently banning the Federal Reserve from ever issuing a CBDC, directly or indirectly.”
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