Clarity Act News: Blockchain Association Tells Senate to Reject Retail CBDC Over Privacy and Innovation Risks

Clarity Act News: The Blockchain Association, a Washington-based crypto industry group representing more than 100 member firms, has sent a formal letter to U.S. Senate leadership opposing the creation of a retail Central Bank Digital Currency, arguing that a government-backed digital dollar would constitute an institutional surveillance threat to financial privacy and would structurally disadvantage the private stablecoin ecosystem that Congress has spent the better part of 2 years attempting to regulate through legislation such as the GENIUS Act and the Digital Asset Market Clarity Act (CLARITY Act, H.R. 3633).

This is not simply a policy objection filed at a convenient moment in the legislative calendar. It is a preemptive effort to close the legislative door on a government-issued digital dollar before the regulatory framework being constructed around private stablecoins inadvertently creates the conditions under which a retail CBDC becomes politically viable, by demonstrating, through Senate inaction on the private-sector alternative, that the market requires a federal solution.

1/ Today, we’re sending a letter to Senate Majority Leader Thune and Senate Democratic Leader Schumer signed by 160 former national security, intelligence, and law enforcement professionals in support of the Clarity Act.https://t.co/1lSQkoaaXI pic.twitter.com/JYP8DYIccl

— Blockchain Association (@BlockchainAssn) June 2, 2026

We suspect the Blockchain Association’s strategic calculus is precisely that: kill the implicit argument for a CBDC by ensuring the explicit argument for regulated private stablecoins succeeds first.

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Clarity Act News: Blockchain Association Letter, The Privacy Case Against a Retail CBDC and Why It Extends Beyond Consumer Protection

The privacy argument in the Blockchain Association’s letter is not a generalized concern about government overreach, it targets the specific architectural properties of a retail CBDC that would distinguish it from any existing payment instrument.

The mechanism functions as follows: a retail CBDC issued directly by the Federal Reserve and held in accounts accessible to individual consumers would, by design, record every transaction on a government-controlled ledger, making the complete financial history of every account holder visible to federal agencies under whatever legal access standard Congress ultimately writes into the authorizing statute.

Unlike commercial bank transactions, which are subject to Fourth Amendment protections, subpoena requirements, and Bank Secrecy Act reporting thresholds that create at least procedural friction for government access, a retail CBDC ledger maintained by the central bank itself would collapse that friction entirely, the government would be both the custodian of the ledger and the entity seeking access to it.

The Blockchain Association characterizes this architecture as a surveillance tool, and that characterization is structurally accurate regardless of what privacy protections any initial authorizing legislation might contain, since such protections are subject to amendment and administrative interpretation over time.

8/ Tomorrow, BA is also bringing letter signatories and members to Washington, D.C. for a fly-in with meetings across 18 Senate offices.

And on Thursday, we’ll host a virtual town hall on how the Clarity Act supports law enforcement and national security.

— Blockchain Association (@BlockchainAssn) June 2, 2026

The letter lands at a moment when the Federal Reserve has itself acknowledged, in its January 2022 CBDC discussion paper, that it would not proceed with any retail CBDC without clear support from the executive branch and from Congress, ideally in the form of a specific authorizing law.

President Biden’s Executive Order 14067 in March 2022 directed Treasury and the Fed to produce a series of assessments, which they did, but the current political environment under the 119th Congress is materially different, and the Blockchain Association is filing this letter into that changed environment, where White House stablecoin policy has tilted toward private-sector solutions rather than a federally issued digital dollar.

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