Crypto Legislation Advances Amid GOP Tensions Over CBDC Ban

Tensions escalated in the House as Republicans clashed over merging cryptocurrency legislation with a proposed ban on central bank digital currencies (CBDCs). Conservative hard-liners, initially resistant, relented after negotiations with party leadership and former President Donald Trump. The compromise links the CLARITY Act—a market-structure bill—with the CBDC prohibition, sparking opposition from key financial committees.

Speaker Mike Johnson is mediating closed-door discussions to salvage the crypto framework. Committee chairs prefer attaching the CBDC ban to must-pass bills like defense or surveillance legislation, fearing the current approach could derail both initiatives. The stalemate highlights growing partisan divides over digital asset regulation as the 2024 election looms.