TD Cowen says Congress likely getting closer to permanently banning a Fed CBDC

TD Cowen analysts believe Congress is nearing a permanent ban on a Federal Reserve-issued Central Bank Digital Currency (CBDC). Senator Ted Cruz recently proposed an amendment to the housing package that would solidify this ban, building on a temporary prohibition already in place. Jaret Seiberg of TD Cowen’s Washington Research Group anticipates the ban will be included in the housing bill, potentially becoming law next month, and views a permanent ban as more probable than a temporary one. While the Fed has stated it has no current plans for a digital dollar without Congressional approval, lawmakers like Ralph Norman express concerns about potential government overreach and privacy violations with a CBDC. This ban is expected to positively impact stablecoin issuers by removing the risk of competition from a Fed-issued digital currency, but could also complicate the passage of broader crypto legislation like the Clarity Act.

(Source：The Block)