Democrats Push for Digital Dollar, Call Crypto a National Security Threat
Democratic lawmakers are intensifying their push for a U.S. central bank digital currency (CBDC), while sharply attacking cryptocurrency as a threat to financial stability and national security.
In a press briefing on Wednesday, senior Democrats argued that ongoing anti-CBDC legislation is designed to stifle innovation and weaken U.S. oversight. They dismissed cryptocurrencies as tools primarily used for crime, and claimed the industry lacks any valid role in the country’s economic system.
Rep. Maxine Waters called recent legislative proposals like the Anti-Surveillance State Act and the GENIUS Act dangerous, warning they would empower malicious actors and delay digital currency development. Rep. Stephen Lynch went further, stating that cryptocurrencies have fueled ransomware attacks and offer no value beyond enabling illicit finance. He said the crypto sector should be treated as a systemic scam.
The Biden administration remains at odds with Congress on the issue. President Trump, in one of his first executive orders this year, formally blocked the issuance of a federal CBDC. Despite this, Democrats continue to press for research and rollout, citing global competition and the need for sovereign digital payment systems.
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Meanwhile, central banks abroad are already experimenting. India is expanding trials for its digital rupee, Australia is preparing wholesale tests, and the UK is focusing on deposit tokenization. Federal Reserve Chair Jerome Powell, however, has made it clear there will be no U.S. CBDC under his leadership.
Public opinion in the U.S. remains skeptical of a digital dollar, with recent surveys showing low support or confusion around the issue. Still, the clash over CBDCs is becoming a central fight in Washington’s broader crypto debate.
Alex is Editor-in-Chief of Coindoo and co-founder of Millennial Media Group, with nearly a decade of experience covering financial markets - crypto first, then everything else. It started in 2016 with Bitcoin. Like most people at the time, he didn't fully understand it - so he kept digging. Blockchain, tokenomics, the projects, the cycles. That curiosity never stopped, and eventually pulled him into traditional markets too: equities, commodities, macro. Not because he left crypto behind, but because you can't properly understand one without the other. What drives him is straightforward: he wants to know why something is happening, not just that it's happening. Most market coverage stops at the headline - price up, price down, here's a chart. Alex finds that kind of reporting actively unhelpful. If you walk away from an article without understanding the mechanism behind the move, what did you actually learn? He holds a degree in Tourism from New Bulgarian University - not the most obvious path into financial markets, but markets have a way of pulling in people who are simply too curious to stay out. He has authored over 200 in-depth analyses and more than 10,000 articles across crypto and traditional finance. He still thinks every day in markets teaches him something new. That's probably why he hasn't stopped.
