CFTC Chairman Michael Selig delivered a definitive message on the future of digital currency in the United States: there will be no central bank digital currency (CBDC) under the Trump administration. Speaking in an interview shared by Bitcoin Magazine, Selig tied the anti-CBDC stance directly to President Trump’s January 2025 executive order and the subsequent report from the President’s Working Group on Digital Asset Markets.
“It is a policy of this administration to prevent a central bank digital currency from coming to fruition,” Selig stated, emphasizing that the position is not merely a campaign promise but a formal, continued policy directive. The executive order, titled “Prohibition of Central Bank Digital Currencies,” explicitly bars federal agencies from taking any action to establish, issue, or promote a CBDC, except where required by law.
Selig contrasted this approach with the previous administration, which he said was “pushing” CBDC-related initiatives. Now, the Trump administration is actively withdrawing or reversing those efforts. The working group’s report further solidifies the policy, framing CBDCs as a risk to financial privacy and individual freedom. Selig warned that a U.S. CBDC could enable government monitoring and censorship of citizens’ economic decisions.
This firm rejection of a government-issued digital dollar has significant implications for the crypto market. By ruling out a retail CBDC, the administration creates a more favorable environment for privately issued digital-money rails, particularly regulated stablecoins. The executive order supports lawful blockchain use, self-custody, and dollar-backed stablecoins, signaling a clear preference for private-sector innovation. For stablecoin issuers and users, the policy lowers the competitive risk that a government alternative might crowd out private tokens.
The anti-CBDC stance is part of a broader push for federal crypto standards. Selig also discussed the CLARITY Act, arguing that a unified federal framework is essential to replace the current fragmented state-by-state and agency-by-agency approach. “We want to get this done so we have certainty, clarity and consumer protection,” he said, positioning the CFTC as a central regulator for market structure and derivatives. This dual approach—anti-CBDC, pro-federal oversight—defines the administration’s vision: private digital-asset infrastructure operating under clear rules.
However, the policy is not permanent by itself. The executive order can be reversed by a future administration, and Congress could legislate differently. For now, under Trump, the U.S. is set on a path that avoids a retail CBDC while nurturing regulated stablecoins and digital-asset markets.
