Fate of crypto, CBDC bills unclear as US Congress heads into recess
2025-07-28
Fate of Crypto, CBDC Bills Unclear as US Congress Heads into Recess
As the halls of Capitol Hill prepare for summer recess, the fate of key cryptocurrency and Central Bank Digital Currency (CBDC) legislation remains in limbo. Despite mounting pressure from industry stakeholders and a wave of recent crypto-related events, lawmakers have yet to finalize the future of two significant bills that recently passed the House of Representatives. The upcoming break means the blockchain and cryptocurrency sector must wait longer for clarity on where federal regulation is headed.
Why It Matters
Cryptocurrency and blockchain technology have rapidly grown from fringe financial experiments to integral parts of the global economy. As adoption by both retail and institutional investors accelerates, regulatory uncertainty continues to cloud the sector’s long-term prospects in the United States. The two bills in question—one clarifying the regulatory roles of the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC), and another restricting the Federal Reserve’s authority to issue a retail CBDC without explicit Congressional approval—address some of the most pressing concerns facing both regulators and market participants.
The lack of concrete legislative progress leaves investors, startups, and established companies in a holding pattern. The industry has long called for clear, comprehensive rules to foster innovation while protecting consumers. Without them, the U.S. risks falling behind other jurisdictions, such as the European Union, which has already advanced its Markets in Crypto-Assets (MiCA) framework.
Technical Breakdown
1. The Financial Innovation and Technology for the 21st Century Act (FIT21)
Often referred to as FIT21, this bill aims to clarify the regulatory perimeter for cryptocurrencies and digital assets. It seeks to establish a clearer distinction between securities and commodities, thereby delineating the oversight responsibilities of the SEC and CFTC. This distinction is crucial, as it would provide clearer guidance for token issuers and exchanges, potentially reducing the frequency of enforcement actions based on uncertain interpretations of securities law.
2. The CBDC Anti-Surveillance State Act
The second major bill focuses on CBDCs. As central banks globally experiment with digital versions of their currencies, the U.S. has thus far taken a cautious approach. The House bill would bar the Federal Reserve from issuing a retail CBDC without direct Congressional authorization, citing concerns over financial privacy and the potential for government overreach. Proponents argue that such a measure is necessary to preserve civil liberties, while critics warn it could hamstring the U.S. in the evolving landscape of digital currencies.
Additional Legislative Context
Both bills have passed the House, but their future in the Senate—and ultimately, on President Biden’s desk—remains uncertain. Senate Banking Committee Chair Sherrod Brown has expressed skepticism about both pieces of legislation, particularly the CBDC bill. The divided nature of Congress, plus competing legislative priorities such as appropriations and national security, means that crypto-related bills may not be high on the agenda when lawmakers return.
What's Next
With Congress poised for recess, the legislative process enters a period of hiatus. However, advocacy from both industry groups and consumer protection organizations is expected to intensify over the summer. Lobbyists from the crypto sector will continue to push for regulatory clarity, while privacy advocates will keep up pressure regarding potential CBDC surveillance risks.
When Congress reconvenes, the path forward will depend heavily on broader political dynamics. The 2024 election cycle is likely to complicate efforts to pass comprehensive crypto regulation, as lawmakers contend with a crowded legislative calendar and partisan gridlock. Nonetheless, bipartisan interest in both fostering innovation and protecting consumers could keep crypto and CBDC regulation on the agenda, especially if significant developments—such as a major enforcement action, exchange collapse, or international regulatory move—occur while Congress is away.
Meanwhile, regulatory agencies such as the SEC and CFTC will likely continue to assert their authority case by case, adding to the patchwork of guidance and enforcement that has characterized U.S. crypto policy to date. This approach, however, may further frustrate an industry eager for stability and clear rules of the road.
Conclusion
As the U.S. Congress heads into recess, the fate of critical cryptocurrency and CBDC bills hangs in the balance. The outcome will have far-reaching implications for the future of digital assets in America, shaping everything from startup activity to consumer protection and international competitiveness. While the House has taken the first step by passing FIT21 and the CBDC Anti-Surveillance State Act, the Senate’s next moves are uncertain. For now, industry participants and observers will watch and wait, hoping that when lawmakers return to Washington, D.C., crypto regulation will move from the periphery to the center of the legislative agenda.
Source:
Cointelegraph, "Crypto and CBDC bills’ fate remains unclear as US Congress heads into recess"