Clarity Act: Could This Mean the End of CBDCs?

Republicans want to combine the ban on the digital dollar with a crypto law supported by some influential Democrats. A risky strategy that reveals both the urgency to define a regulatory framework and the ideological fractures of the U.S. Congress.

A legislative merger that changes the game

GOP leaders have decided to combine two major texts: the ban on CBDCs and the CLARITY law. The latter aims to provide a clear framework for digital tokens and bring more stability to the crypto market. By merging the two, Republicans seek to capitalize on the bipartisan support CLARITY had already obtained.

However, this decision is not without risk. Republicans have almost exclusively voted for the anti-CBDC text, while nearly 80 Democrats supported CLARITY. By mixing the two approaches, the GOP risks losing this essential backing to hope to pass the Senate stage. The maneuver seems more like an attempt to score a political point than a real long-term strategy.

Underlying this is the growing distrust among some elected officials towards a state digital dollar. For them, the CBDC represents a direct threat to privacy and economic freedom. Private crypto-assets, by contrast, are seen as a barrier against this centralization of monetary power.

Democratic support, a fragile equation

On the Democratic side, skepticism is growing towards this merger. Many lawmakers see the CLARITY law as a serious opportunity to regulate the crypto market, but reject the idea of blocking any CBDC on principle. For them, it would be irresponsible to close off to a technology that could strengthen the dollar’s competitiveness against the digital yuan or the digital euro.

The Republican attempt is thus seen more as a provocation than an outstretched hand. By imposing an anti-CBDC text, the GOP reduces room for compromise and fuels partisan division. A strategy that could cause two essential projects to fail at once.

Even promises to include the ban on the digital dollar in the national defense bill have not been enough to reassure. Democrats have remained firm: this provision will be removed in the Senate. As a result, the fragile alliance built around CLARITY risks quickly crumbling.

The Senate charts its own crypto path

While the House of Representatives bogs down in political calculations, the Senate prefers to move forward on a more consensual basis. Senators Cynthia Lummis and Tim Scott advocate a separate bill, the Responsible Financial Innovation Act. This one proposes clear crypto regulation but without closing the door to a possible CBDC.

This approach reflects a pragmatic choice: to achieve a durable bipartisan compromise capable of meeting the expectations of financial markets and the crypto ecosystem. Unlike the House strategy, the Senate aims to build a solid and realistic legislative framework.

In this context, the Republican maneuver in the House may remain symbolic. While it may energize the conservative electorate, it mainly risks isolating the GOP in a debate that nonetheless requires broad alliances. The future of the American crypto market will be decided in the Senate, and probably without a frontal ban on the digital dollar.