Congressman Warren Davidson warned the cryptocurrency industry has abandoned Bitcoin's (BTC) original purpose as a permissionless payment system in favor of account-based systems that enable surveillance.
The Ohio Republican argued in a New Year message that regulatory momentum favors centralized frameworks over decentralization.
Davidson specifically criticized the recently enacted GENIUS Act for establishing what he called a "wholesale CBDC" framework.
The stablecoin legislation passed both chambers and became law on July 18, 2025.
What Happened
Davidson argued Bitcoin's promise was "a permission-less, peer-to-peer payment system" as envisioned by creator Satoshi Nakamoto.
He contended current regulations create "account-based dominance" that conditions access to money through third parties.
The GENIUS Act established federal oversight for payment stablecoins requiring 100% reserve backing with U.S. dollars or Treasury securities.
The legislation prohibits non-bank stablecoin issuers from paying interest and requires technical capability to freeze or seize tokens when legally ordered.
Davidson stated the broader Digital Asset Market Clarity Act awaits Senate passage after passing the House 294-134 in July.
He predicted any Senate version would offer only "cosmetic" protections for self-custody rights.
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Why It Matters
Davidson's critique reflects ongoing tension between regulatory clarity and decentralization principles within the cryptocurrency industry.
The congressman warned digital ID requirements and central bank digital currencies pose "existential threats" to financial freedom.
He called for wholesale rejection of third-party surveillance or strong legal protections for privacy-focused architectures like Bitcoin and Zcash (ZEC).
Davidson urged constituents to pressure Congress to fully ban CBDCs, ban digital ID, and protect self-custody rights.
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