Trump reaffirms ban on central bank digital currency, defending the GENIUS Act

World Trump reaffirms ban on central bank digital currency, defending the GENIUS Act President Donald Trump backs clearer crypto rules while maintaining his opposition to a US digital dollar, urging Congress to advance the stalled CLARITY Act.

Key points

• According to the official statements from The White House, Trump has heavily championed the legislation as a vital step to cement U.S.
• It mandates that stablecoin issuers back their digital tokens 100% with secure, liquid reserve assets like U.S.
• Signed into law, the GENIUS Act established the first comprehensive federal regulatory framework for payment stablecoins in the U.S.
• Hafsa Naeem is an entertainment reporter specialising in K-dramas, films, and celebrity-driven stories.
• President Donald Trump reaffirmed his opposition to a U.S.

In a latest update U.S. President Donald Trump reaffirmed his opposition to a U.S. Central bank digital currency (CBDC) during a White House session with cryptocurrency industry executives on August 19.

It comes after Trump administration has resisted a Federal Reserve-issued digital dollar.

After the announcement for the crypto bill, Trump administration enacted strict measures including an executive order strengthening American leadership in digital financial technology to prohibit federal agencies from issuing, endorsing, or establishing a CBDC within the United States.

For context, the administration has consistently argued that a government-backed digital dollar poses severe threats to individual privacy, financial system stability, and financial freedom, viewing it as a potential tool for administration surveillance or overreach. The GENIUS Act and the 'Joke' Commentary.

It mandates that stablecoin issuers back their digital tokens 100% with secure, liquid reserve assets like U.S. Dollars or short-term treasury bills and subjects them to strict anti-money laundering (AML) compliance.

According to the official statements from The White House, Trump has heavily championed the legislation as a vital step to cement U.S. Dominance in digital assets and bolster the global reserve status of the U.S. Dollar.

His "jokes" and sharp commentary typically target traditional banking institutions or regulatory gridlocks that try to undermine or weaken the private stablecoin and digital asset frameworks established by the act.

By legally barring a government-run CBDC while simultaneously codifying clear, regulated pathways for private stablecoins and digital assets, the administration's policy relies entirely on the private sector and blockchain-based dollar tokens to drive digital financial innovation rather than a centralized Federal Reserve digital currency.

Hafsa Naeem is an entertainment reporter specialising in K-dramas, films, and celebrity-driven stories. She explores global content trends and audience engagement, delivering accessible coverage that captures the emotional and cultural impact of entertainment throughout diverse viewership.

For now, trump reaffirms ban on central bank digital currency, defending the GENIUS Act remains the part of the story worth watching, and further updates are likely as more details are confirmed.