US CBDC Banned Until 2030 — The SEC Makes Its Move with 'Independent Regulation'

The landscape of US crypto regulation is entering a state of absolute turbulence. As a bill banning the issuance of a Central Bank Digital Currency (CBDC) without presidential signature took effect automatically, the US Securities and Exchange Commission (SEC) has stepped forward with its own independent deregulation, claiming it must act before Congress does. Here is an easy-to-understand breakdown of this historic standoff between a Congress trying to legislate and regulators fighting for the upper hand!

'CBDC Ban' Passed Without Presidential Signature

The US '21st Century ROAD to Housing Act' officially became law as of midnight on July 11th. While it might seem unrelated to crypto as a housing-related bill, it hides a massive twist: it contains a historic prohibition clause that prevents the Federal Reserve from issuing a digital dollar—a CBDC—until December 31, 2030.

The process through which this bill passed reads like a political drama. After his preferred election-related bill was stalled in the Senate, President Donald Trump refused to sign the housing bill in retaliation. He didn't use his veto power, but effectively just sat on it without signing.

Ultimately, as the 10-day review period mandated by the US Constitution expired, the CBDC prohibition was finalized through this unique mechanism where the bill becomes law without a presidential signature. According to Congress and international media, the bill was co-sponsored by Representative Tim Scott and Representative French Hill, garnering bipartisan support. Thanks to this, the introduction of a US CBDC is firmly locked away until the end of 2030.

SEC's Surprise Attack Amid Congressional Stagnation: 'Regulation Crypto'

While Congress spends time bickering over new virtual asset bills, the SEC, led by Chairman Paul Atkins, has played a surprise card. According to the annual regulatory agenda recently released by the SEC, they are planning to formally announce a draft of a new regulation called 'Regulation Crypto' sometime in July.

The core of this regulation is a kind of 'temporary safe harbor' that exempts early-stage token projects from registration for up to four years while they prepare for decentralization. The intent is to provide room for projects to grow legally rather than just applying stringent standards. This is interpreted as the SEC trying to seize the lead and set the rules themselves rather than waiting indefinitely for Congress to legislate.

In fact, Chairman Michael Selig of the Commodity Futures Trading Commission (CFTC) has also issued a warning expressing concern about this move. In an interview with Fox Business, he pointed out that if Congress fails to pass bills in time, regulatory agencies will eventually end up writing all the rules on their own. As the legislative process in Congress drags on, the voices of regulators are getting louder; where will this power struggle lead?

The CLARITY Act Mired in Political Mud

There is a comprehensive regulatory bill that the crypto industry has been waiting for for a very long time: the 'CLARITY Act.' Unfortunately, it has hit a major bottleneck right before the August 7th congressional recess.

The main cause of this shake-up is none other than the financial disclosure of President Donald Trump. Data revealed that President Trump's virtual asset-related income last year reached a staggering $1.4 billion (approximately 1.9 trillion KRW). With everything from meme coin licensing fees to token sales revenue from 'World Liberty Financial,' in which his family participated, the conflict-of-interest controversy has erupted in full force.

Consequently, the Democratic Party has begun pressuring for strong ethical clauses to be added to the bill that would limit crypto profit generation by high-ranking public officials. When an ethics amendment proposed by Senator Chris Van Hollen was defeated in a committee vote, key Democratic lawmakers began withholding support for the bill one after another, further intensifying the standoff.

Unable to watch any longer, CFTC Chairman Michael Selig issued a biting warning that if Congress misses this recess period, regulatory agencies will end up writing all the rules themselves. There is growing concern that political infighting might cause them to miss the legislative 'golden time' and only increase market confusion.

Who Will Be the Rulemaker?

While Congress is tied up in a mudslinging match, the likelihood that market leadership will shift to regulatory agencies has increased. As CFTC Chairman Michael Selig warned, if Congress fails to pass a bill before the August recess, regulatory agencies will inevitably write their own rules independently. We will have to watch whether Congress can find a dramatic compromise or if the SEC's surprise regulation, to be unveiled in July, will shake up the landscape!

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