US Treasury Secretary Scott Bessent has publicly opposed the Federal Reserve’s Central Bank Digital Currency (CBDC) initiative, calling it a “sign of weakness” for the government. Instead, he emphasizes support for private sector digital assets and underlines that US policy will continue to focus on regulating existing cryptocurrencies rather than launching a state-backed CBDC. Bessent’s standpoint aligns with President Trump’s executive order prohibiting the development of a federal CBDC, reaffirming the administration’s preference for private innovation over government-led digital currency solutions.
Federal Reserve Chair Jerome Powell also shows no intention of pursuing a CBDC, indicating a regulatory approach towards stablecoins and other digital assets. This highlights a policy continuity aimed at supporting regulated private crypto markets while maintaining market stability. Bessent argues that government digital currencies imply underlying economic insecurity, whereas private cryptocurrencies offer growth and investment opportunities. The Senate’s upcoming vote on crypto regulation remains a pivotal moment that could impact the legislative direction regarding stablecoins and other crypto assets.