Key Takeaways
- Representative Warren Davidson warns that US crypto regulation undermines Bitcoin’s vision.
- Davidson criticizes the GENIUS Act for favoring banks and enabling “wholesale CBDC.”
Rep. Warren Davidson warns that US crypto regulations, including the GENIUS Act and the upcoming CLARITY Act, are pushing digital assets into account-based systems that threaten Bitcoin’s original purpose of financial freedom, weaken self-governance and open the door to increased surveillance through digital IDs and central bank digital currencies (CBDCs).
The congressman, who recently introduced a bill that would allow U.S. citizens to pay federal taxes with Bitcoin, shared his views on U.S. crypto policy and the future of digital assets in an end-of-year post on Wednesday.
“The markets, in my opinion, have come to a standstill because the use of disintermediation has been effectively destroyed in America,” says Davidson. wrotewith flat crypto markets attributed to regulatory failures and legislative inaction.
Davidson criticized the GENIUS Act, which went into effect in 2025, for creating a stablecoin framework that favors banks through an account-based approach. He said the law blocks non-bank innovation, discourages restraint and “enables wholesale CBDC” by design.
The congressman also expressed doubts about the CLARITY Act, claiming that while it could address the gaps in GENIUS, it likely won’t go far enough to protect self-control or individual liberty.
“Ultimately, if the Senate passes even a bill, I expect that any nod to individual liberty will be cosmetic and not meaningfully change the bill-based regime,” he noted.
Davidson added that the future of money, under these regulated circumstances, appears to be allowed and monitored, which is in stark contrast to the fundamental principles of crypto.
“The promise of Bitcoin was not an illiquid, inflating asset, but rather a permissionless peer-to-peer payment system,” he wrote. “Account-based HODL dominance has led to some useful innovations, but these are under serious threat.”
Davidson predicted that governments and industry will push digital identity systems in which access to money is tied to a verified ID, a model that may seem free but in practice would allow for greater surveillance and control.
He said the right to transact should be treated as a fundamental freedom and only limited if there is probable cause to do so, arguing that the US should either overturn legal doctrines that allow fair financial supervision or rely on decentralized encryption systems like Bitcoin or Zcash to block it.
The Bitcoin supporter urged voters to pressure Congress to ban central bank digital currencies, oppose digital ID mandates and protect self-custody rights.
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