TechFlow News, March 11: According to The Block, investment bank TD Cowen stated that the U.S. Congress may soon permanently ban the Federal Reserve from issuing a digital dollar. Jaret Seiberg, Managing Director of TD Cowen’s Washington Research Group, noted in a Monday report that the housing bill—expected to be submitted to the President as early as next month—is likely to include a prohibition on central bank cryptocurrencies, with a permanent ban more likely than a temporary one. Seiberg added that this amendment would largely codify the Federal Reserve’s existing position, as the Fed has repeatedly stated it has no plans to issue a digital dollar.
Seiberg believes a permanent ban would benefit stablecoin issuers by alleviating concerns that a Fed-issued digital dollar could disrupt their business. However, it could pose a new obstacle to the passage of the Clarity Act, as lawmakers might argue that sufficient attention has already been paid to the industry given the prior passage of the GENIUS Act and the CBDC ban.
