Fed Confirms CBDC Pause While Expanding Digital Asset Oversight
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Federal Reserve confirmed it has paused CBDC development and is not currently reviewing a U.S. CBDC, saying it lacks legal authority to issue a CBDC without Congress. Policymakers cited an executive order and signaled a shift from CBDC work to expanded digital asset supervision and fintech oversight. Market impact: CBDC pause reduces immediate central-bank competition for crypto, but stronger regulatory oversight raises risks for crypto adoption, DeFi, DEX/CEX operations and token markets.
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- Federal Reserve confirms CBDC work has stopped, and no plans are currently under review.
- Officials say no legal authority exists for CBDC issuance without Congress’s approval.
- Regulatory focus shifts to digital assets supervision and fintech innovation oversight.
Federal Reserve officials have confirmed that the U.S. central bank is not looking into the development of a central bank digital currency (CBDC), stating that earlier work in this area has been discontinued. The clarification was delivered during congressional testimony, where policymakers examined the status of digital asset initiatives alongside executive directives and legal constraints governing the Federal Reserve’s authority.
During the session, lawmakers cited an executive order issued by President Donald Trump directing federal agencies to halt any CBDC-related efforts. In response, officials fr…
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