TD Cowen: Congress may be close to permanently banning the Federal Reserve from issuing CBDCs.

CoinFeed reported on March 11th, citing The Block, that investment bank TD Cowen stated Congress may be close to permanently banning the Federal Reserve from issuing digital dollars. Senator Ted Cruz last week submitted an amendment to the Senate Housing Act, proposing to make the current temporary ban, which runs until 2030, permanent. This housing legislation is expected to be voted on in the Senate as early as this week. TD Cowen believes that a permanent ban on CBDCs would benefit stablecoin issuers, eliminating concerns that the Federal Reserve could disrupt their business. However, this move could become another obstacle to the CLARITY Act, a crypto market structure bill, as lawmakers may believe that with the GENIUS stablecoin bill and the CBDC ban already passed, there is no need to push for the CLARITY Act this year. Analysts point out that each additional hurdle reduces the likelihood of the bill passing.