SEC Actions ‘Pave the Way’ for CBDC, Says US Senator Hagerty

US Senator Bill Hagerty (R-TN) has warned that recent actions by the Securities and Exchange Commission (SEC) “pave the way” for the creation of a central bank digital currency (CBDC).

In a letter to SEC Chairman Gary Gensler, Hagerty said that the SEC’s recent enforcement actions against cryptocurrency companies “raise serious concerns about the agency’s regulatory overreach.”

Hagerty specifically cited the SEC’s actions against Ripple Labs and BlockFi, both of which were accused of selling unregistered securities.

“The SEC’s actions against Ripple and BlockFi are just the latest examples of the agency’s efforts to regulate cryptocurrency,” Hagerty wrote. “These actions are concerning because they could pave the way for the creation of a CBDC.”

Hagerty argued that a CBDC would be a “tool for government surveillance and control” and that it would “undermine the innovation and growth of the cryptocurrency industry.”

“I urge you to reconsider the SEC’s approach to cryptocurrency regulation,” Hagerty wrote. “The agency should focus on protecting investors, not stifling innovation.”

The SEC has not yet responded to Hagerty’s letter.

About CBDCs

A CBDC is a digital currency that is issued by a central bank. CBDCs are not yet widely available, but some central banks, such as China’s People’s Bank of China, are actively developing them.

Proponents of CBDCs argue that they could offer a number of benefits, such as increased efficiency and security. Opponents of CBDCs argue that they could pose a threat to financial privacy and could lead to government overreach.

The debate over CBDCs is likely to continue in the years to come.

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