TLDR
- Trump vows to block all US CBDC development, in line with his campaign pledge against government control of digital currency
- Bipartisan support is growing for private stablecoin regulation with several bills in Congress
- The new White House crypto council is expected to include around 20 industry leaders
- Plans emerge for potential executive orders on crypto policy and CBDC bans
- The industry is pushing to create strategic Bitcoin reserves instead of CBDC
President Donald Trump’s administration preparing to block the development of a central bank digital currency (CBDC) while it may open doors to options in the private sector.
Trump has maintained a campaign promise made in New Hampshire earlier this year, saying he would “never allow the creation of a digital central bank currency.” The president’s stance stems from concerns about government oversight of personal finances, arguing that a CBDC would give authorities “absolute control over your money.”
The administration’s position is consistent with broader Republican skepticism about government interference in financial markets. Trump’s cabinet picks and key Republican lawmakers have expressed similar opposition to a government-controlled digital dollar.
Instead of a CBDC, lawmakers from both parties are pushing legislation to regulate private stablecoins. The House of Representatives is considering the Clarity for Payment Stablecoins Act of 2023, introduced by Representative Patrick McHenry. In the Senate, a bipartisan effort led by Republican Cynthia Lummis and Democrat Kirsten Gillibrand has produced the Lummis-Gillibrand Payment Stablecoin Act.
Standard Chartered’s global head of digital asset research, Geoff Kendrick, told Cointelegraph,
“CBDC in the US is dead under Trump.”
He predicts the passage of stablecoin regulation in the coming months, which could lead to more traditional financial institutions issuing stablecoins.
The administration is expected to establish a White House crypto council consisting of about 20 industry leaders. This council would guide policy decisions and help shape the regulatory environment for digital assets. David Sacks has reportedly been named White House crypto czar.
Privacy concerns have played a central role in opposition to CBDCs. Trump has warned that with a government-controlled digital currency, authorities could potentially seize money without warning. These concerns reflect broader public skepticism about CBDCs, even as some central banks seek to address privacy concerns.
John Kiff, former senior financial sector expert at the International Monetary Fund, notes that while users want “cash-like anonymity and privacy,” central banks must balance those desires with financial integrity laws and regulations.
The global CBDC landscape shows limited success, with only four launches out of 169 projects being tracked worldwide. This slow rate of adoption suggests challenges beyond just political opposition.
Scott Bessent, Trump’s pick for Treasury Secretary, questioned the need for a US CBDC during a Senate Finance Committee hearing. He argued that CBDCs are more suitable for countries that lack investment options, noting that US dollar holders already have access to various safe assets.
Industry observers point out that developed countries such as the US already have efficient payment systems through credit cards, debit cards and fintech platforms. This existing infrastructure makes it more difficult to justify the development of a CBDC.
The administration’s approach may affect global CBDC development. As China continues to expand its digital yuan program and the European Central Bank pursues a digital euro, smaller economies may reconsider their CBDC projects following the US position.
Reports suggest that Trump may sign executive orders to formalize the ban on CBDC development. The industry is also pushing to create a strategic Bitcoin reserve, with support from figures like Michael Saylor and companies like Coinbase.
The proposed regulatory framework could allow US banks to offer crypto trading services. There are also ongoing discussions to repeal the SEC’s Staff Accounting Bulletin 121 rule, which could affect how financial institutions handle digital assets.
Some cryptocurrency advocates are calling for the president to pardon Ross Ulbrichtthe founder of Silk Road, although no official announcement has been made on this matter.
The stablecoin legislation currently under consideration would provide regulatory clarity that industry participants say is necessary for growth. These bills could get quick attention as representatives prepare for their 2026 re-election campaigns.
Rather than closing doors to digital currency innovation, the administration’s policy appears aimed at directing development through private sector channels while maintaining oversight. This approach could shape the future of digital payments in the US for years to come.
The wholesale development of CBDCs for cross-border payments may continue, as the Federal Reserve explores options to improve the efficiency of international transactions. However, retail CBDC plans seem decidedly off the table under the current administration.
As of the latest reports, the White House Crypto Council is scheduled to meet this Thursday, where further policy decisions may be announced. The crypto industry is awaiting clear signals about the administration’s first 100 days in office and the implementation of promised executive orders.
