TLDR
- Trump promises to block any US CBDC development, aligning with his campaign pledge against government control of digital currency
- Bipartisan support grows for private stablecoin regulation with multiple bills in Congress
- New White House Crypto Council expected with approximately 20 industry leaders
- Plans emerge for potential executive orders on crypto policy and CBDC ban
- Industry pushes for strategic Bitcoin reserve creation instead of CBDC
President Donald Trump’s administration prepares to block the development of a central bank digital currency (CBDC) while potentially opening doors for private sector alternatives.
Trump has maintained his campaign promise made in New Hampshire earlier this year, stating he would “never allow the creation of a central bank digital 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 aligns with broader Republican skepticism toward government involvement in financial markets. Trump’s chosen cabinet members and key Republican lawmakers have expressed similar opposition to a government-controlled digital dollar.
In place of a CBDC, lawmakers from both parties are advancing legislation to regulate private stablecoins. The House of Representatives is considering the Clarity for Payment Stablecoins Act of 2023, introduced by Rep. 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 assets 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 comprising around 20 industry leaders. This council would guide policy decisions and help shape the regulatory environment for digital assets. David Sacks has reportedly been appointed as the White House’s crypto czar.
Privacy concerns have played a central role in the opposition to CBDCs. Trump has warned that with a government-controlled digital currency, authorities could potentially seize funds without notice. These worries reflect broader public skepticism about CBDCs, even as some central banks try to address privacy issues.
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 these desires with financial integrity laws and regulations.
The global landscape for CBDCs shows limited success, with only four launches out of 169 projects tracked worldwide. This slow adoption rate suggests challenges beyond just political opposition.
Scott Bessent, Trump’s Treasury Secretary pick, questioned the need for a US CBDC during a Senate Committee on Finance hearing. He argued that CBDCs are more suitable for countries lacking investment alternatives, noting that US dollar holders already have access to various secure assets.
Industry observers point out that developed countries like the United States already have efficient payment systems through credit cards, debit cards, and fintech platforms. This existing infrastructure makes it harder to justify the development of a CBDC.
The administration’s approach may influence global CBDC development. While China continues to expand its digital yuan program and the European Central Bank pursues a digital euro, smaller economies might reconsider their CBDC projects following the US position.
Reports indicate that Trump may sign executive orders to formalize the ban on CBDC development. The industry is also pushing for the creation of 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 discussions about repealing 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 Ulbricht, the founder of Silk Road, though 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 receive expedited 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 regulatory oversight. This approach could shape the future of digital payments in the United States for years to come.
Wholesale CBDC development for cross-border payments may continue, as the Federal Reserve explores various options to improve international transaction efficiency. However, retail CBDC plans appear firmly off the table under the current administration.
As of the latest reports, the White House Crypto Council is scheduled to meet this Thursday, where additional policy decisions may be announced. The crypto industry awaits clear signals about the administration’s first 100 days in office and the implementation of promised executive orders.
