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U.S. lawmakers may permanently ban a Federal Reserve digital dollar.
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Senator Ted Cruz proposed an amendment to extend the current CBDC ban.
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Analysts say such a move could benefit stablecoin issuers.
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However, it could complicate broader crypto legislation efforts.
Push to Block a Digital Dollar
The U.S. Congress may move closer to permanently banning a central bank digital currency issued by the Federal Reserve.
Senator Ted Cruz introduced an amendment to the Senate housing legislation known as the 21st Century ROAD to Housing Act. The amendment would extend the current temporary ban on a Federal Reserve CBDC, which currently runs through 2030.
If approved, the ban would prevent the Fed from issuing a digital dollar without further congressional approval.
Potential Impact on the Crypto Industry
Analysts at TD Cowen said the proposal largely reinforces the Federal Reserve’s current stance, as the central bank has repeatedly stated it does not plan to launch a CBDC without explicit authorization from Congress.
A permanent ban could benefit private stablecoin issuers by removing concerns that a government-issued digital dollar might compete with their products.
However, analysts warn that the measure could also complicate efforts to pass broader crypto market structure legislation, including the proposed CLARITY Act.
