Tom Emmer, U.S. Representative from Minnesota, argued at a March 11 hearing that central bank digital currencies (CBDCs) could undermine American values by enabling unnecessary financial surveillance.
He reintroduced the CBDC Anti-Surveillance State Act on March 6, aiming to prevent future U.S. administrations from launching a CBDC without Congressional approval. Emmer emphasized that CBDCs could lead to government overreach, threatening citizens’ privacy.
During the same hearing, Paxos CEO Charles Cascarilla called for consistent global stablecoin regulations to avoid regulatory arbitrage and ensure fair competition. Emmer, advocating for stablecoins, highlighted their potential to bring traditional finance onto the blockchain while preserving privacy. He argued that stablecoin legislation should be prioritized alongside anti-CBDC efforts.
Emmer also stressed that the development of stablecoins could help bridge the gap between the traditional financial system and the decentralized economy, offering more secure and efficient financial transactions. He noted that a balanced approach to stablecoin regulation would allow for growth and innovation while protecting consumers from potential risks associated with digital currencies.
Additionally, the Center for Political Accountability (CPA) raised concerns over the growing political influence of crypto companies, revealing that they spent $134 million on the 2024 U.S. elections, potentially destabilizing regulatory frameworks. This influx of political spending highlights the mounting power of the crypto sector and its ability to sway policy decisions, adding another layer of complexity to the future of digital currency regulation.
Anchorage Digital, a federally chartered crypto custody bank, is urging its institutional clients to move away from major stablecoins like USDC, Agora USD (AUSD), and Usual USD (USD0), recommending instead a shift to the Global Dollar (USDG) — a stablecoin issued by Paxos and backed by a consortium that includes Anchorage itself.
Ethereum co-founder Vitalik Buterin has voiced concerns over the rise of zero-knowledge (ZK) digital identity projects, specifically warning that systems like World — formerly Worldcoin and backed by OpenAI’s Sam Altman — could undermine pseudonymity in the digital world.
A new report by the European Central Bank (ECB) reveals that digital payment methods continue to gain ground across the euro area, though cash remains a vital part of the consumer payment landscape — particularly for small-value transactions and person-to-person (P2P) payments.
Geopolitical conflict rattles markets, but history shows panic selling crypto in response is usually the wrong move.