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U.S. House Reattaches Anti-CBDC Bill to CLARITY Act Ahead of Senate Review
Lawmakers push to block a Federal Reserve digital dollar by embedding anti-CBDC language into the broader crypto market structure bill.
What’s Happening Now
The U.S. House has reattached provisions from the Anti-CBDC Surveillance State Act (H.R. 1919) to the CLARITY Act (H.R. 3633) before sending it to the Senate for review. The move combines two major pieces of legislation:
- The CLARITY Act: Seeks to establish a clear regulatory framework for digital assets, defining oversight responsibilities between the SEC and CFTC.
- The Anti-CBDC Act: Prohibits the Federal Reserve from issuing a central bank digital currency (CBDC) to individuals or creating retail Fed accounts.
By embedding the CBDC ban inside the broader, more likely-to-pass CLARITY Act, lawmakers are raising the odds that these restrictions make it through Senate negotiations.
Implications for CBDC Development
If enacted, the anti-CBDC provisions would create legal barriers to a digital dollar. The Federal Reserve would face restrictions on directly offering digital currency to the public, severely limiting potential CBDC designs. Any future attempt would either require new exemptions (such as for national security) or a significantly scaled-back version of a digital dollar.
Regulatory Clarity for Crypto
The CLARITY Act itself provides long-sought regulatory boundaries by clarifying which federal agencies have authority over crypto assets and intermediaries. For crypto firms, exchanges, and stablecoin issuers, this could reduce compliance ambiguity. However, the attachment of anti-CBDC language adds political complexity — potentially alienating moderate senators or prompting efforts to dilute the ban.
Bigger Picture: Structural Finance at Stake
This legislation is not just about crypto — it’s about the future control of money and digital infrastructure. Several dynamics stand out:
- Monetary Sovereignty vs. Surveillance: Whether the state has direct power over citizens’ wallets.
- Agency Authority: Defining long-term jurisdiction between SEC, CFTC, Treasury, and the Fed.
- Global Competition: With China, the EU, and dozens of nations advancing CBDCs, U.S. hesitation reshapes the competitive landscape for payments and standards.
- Privacy vs. Innovation: Balancing innovation in fintech with civil liberties and systemic risk.
What to Watch Next
- Senate Banking Committee’s stance: whether they keep or strip the anti-CBDC provisions.
- White House position: a veto or amendment could reshape the bill.
- Fed and Treasury response: whether they pause or adapt internal CBDC research.
- International pressure: how U.S. caution contrasts with global CBDC adoption trends.
Why This Matters
The House’s decision to pair a ban on CBDCs with a framework for digital asset regulation signals a deeper fight over who controls the future of money. Beyond politics, this is about the architecture of the U.S. and global financial system — how money is issued, who regulates it, and what privacy rights survive in the digital era.
This is not just politics — it’s global finance restructuring before our eyes.
@ Newshounds News™
Sources: Coingape, Congress.gov
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De-Dollarization Reaches Critical Phase: China’s Yuan Adoption for Cross-Border Flows Tops 50%
China’s yuan surpasses the halfway mark in cross-border trade flows, marking a milestone in global de-dollarization.
Milestone in De-Dollarization
China’s efforts to internationalize the yuan have reached a new benchmark: over 50% of national cross-border flows are now settled in yuan, according to the State Administration of Foreign Exchange. This represents a doubling of yuan usage since 2022 and underscores how China is accelerating the global shift away from dollar reliance.
While the yuan still represents less than 4% of all international trade, the momentum is undeniable. Analysts note that yuan usage is boosted by China’s Cross-Border Interbank Payment System (CIPS) — its domestic alternative to SWIFT — which may even undercount true flows.
Why It’s More Than Politics
The yuan crossing 50% of China’s cross-border settlement flows shows a structural financial shift, not just a political talking point. It’s about real-world changes in how nations trade and settle debts. Politics may set the tone — sanctions, tariffs, or foreign policy uncertainty under Trump — but the deeper effect is a weakening reliance on the U.S. dollar and a growing acceptance of alternatives like the yuan.
Proof of Global Finance Restructuring
The shift is visible across multiple fronts:
- Yuan Adoption Milestone: Over 50% of Chinese cross-border flows now settled in yuan.
- SWIFT Alternative (CIPS): China’s settlement system bypasses Western financial choke points.
- Sovereign Debt in Yuan: Hungary issued $5B in panda bonds; Russia and Brazil preparing yuan-based debt.
- Reserves Shift: China cut U.S. Treasuries to a 16-year low while increasing gold purchases for 10 straight months.
These aren’t just political maneuvers; they are structural financial realignments in trade, debt, and reserves — exactly what a global reset looks like.
Implications for De-Dollarization
The U.S. dollar remains dominant, but its share is eroding at the edges. The yuan, though still under 4% of global trade, has doubled its footprint since 2022. Geopolitical pressures like sanctions and trade wars are accelerating the trend, forcing nations to transact in national or alternative currencies.
Through the Seeds of Wisdom lens, this is clear: while some frame de-dollarization as “just political fights,” in reality, the underlying economic architecture is being restructured — trade, reserves, debt, and payments.
Why This Matters
The yuan’s rise to more than half of China’s cross-border flows is more than just a trade statistic — it’s the clearest proof yet of systemic de-dollarization in action. With new debt markets, alternative payment rails, and shifting reserves, the world’s financial foundation is being remade step by step.
This is not just politics — it’s global finance restructuring before our eyes.
@ Newshounds News™ Exclusive
Source: Bitcoin.com, Atlantic Council
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France Targets EU-Licensed Crypto Firms, Malta Opposes Centralized Oversight
EU divisions over crypto oversight highlight deeper struggles in building a unified financial system.
France Pushes for Stronger EU Crypto Oversight
France is weighing blocking crypto firms licensed in other EU countries from operating domestically, a sharp response to concerns about uneven enforcement under the EU’s new MiCA framework.
MiCA, which allows firms licensed in one member state to “passport” services across the entire EU, has exposed cracks in the system. France’s financial regulator, the AMF, argues some firms are exploiting lenient licensing regimes to bypass stricter oversight elsewhere.
France has joined Italy and Austria in calling for the European Securities and Markets Authority (ESMA) to directly supervise major crypto firms, effectively centralizing oversight at the EU level.
AMF President Marie-Anne Barbat-Layani warned: “We do not exclude the possibility of refusing the EU passport. It’s very complex legally and not a very good signal for the single market – it’s a bit like the ‘atomic weapon’ but it’s still a possibility we hold in reserve.”
Push for ESMA Control
Supporters of ESMA oversight argue that national regulators are supervising crypto markets differently, creating inconsistencies that could harm investors. France, Italy, and Austria want direct EU supervision, stronger rules for firms outside the bloc, and tighter controls on token offerings and cybersecurity.
Malta Pushes Back
Not all member states agree. Malta, long considered an “early adopter” of digital asset regulation, opposes giving ESMA sweeping control. Its regulator, the MFSA, warned that full centralization could add bureaucracy and stifle efficiency just as Europe is competing globally in digital finance.
Earlier this year, Malta faced criticism after an ESMA review found weaknesses in its licensing process, but the country maintains that local regulators can act quickly and effectively without ceding all authority to Brussels.
Why This Matters
This fight goes far beyond a regulatory turf war. The EU is attempting to balance sovereignty, efficiency, and investor protection in a financial system where money now flows digitally across borders. France’s hardline stance, Malta’s resistance, and ESMA’s growing role are signs that the rules of global finance are being rewritten through regulation.
For the EU, how this dispute is resolved will shape whether Europe’s digital economy speaks with one unified voice or remains fragmented — a question that affects its competitiveness against the U.S. and China.
This is not just politics — it’s global finance restructuring before our eyes.
@ Newshounds News™ Exclusive
Sources: Coinpedia, Reuters
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