Part of President Biden’s Executive Order instructed the Financial Stability Oversight Council to “identify and mitigate economy-wide (i.e., systemic) financial risks posed by digital assets and address regulatory gaps.” and to “make appropriate policy recommendations for
Critics point to gaps in CBDC plans
But critics of Biden’s plan, such as Gov. De Santis, argue that it will affect the broader conservative agenda within the Republican Party, which advocates a federally-sanctioned CBDC.
According to De Santis, a federally regulated CBDC would “become a direct liability of the federal government rather than a chartered financial institution, reducing the lending capacity of the market and thus reducing community banks and credit unions in the financial system.” I would shrink the role.”
But others, like U.S. Rep. Tom Emmer, argue that banking policies that discredit cryptocurrencies are marketing the Fed’s own payment system, known as FedNow (scheduled to launch in July). This is a market standard that favors the government’s own monetary policy over the private sector.