US Will Not Create a Digital Dollar to Avoid Privacy and Surveillance Risks

CFTC Chairman Mike Selig has flatly ruled out a US central bank digital currency. In an interview published July 8, Selig said the country would "never issue a CBDC" – a statement that puts the world's largest economy on a radically different path from dozens of other nations already testing digital dollars.

Selig pinned the reasoning on privacy and surveillance risks. He said President Donald Trump's digital asset working group understands that a CBDC "could become a tool to monitor and censor the economic activity of ordinary Americans." The chairman added that the US would never issue a CBDC under the CFTC's oversight.

The remarks come as central banks in China, the European Union, and other jurisdictions push ahead with CBDC pilots. The US has taken a deliberately different stance under the current administration, with the working group instead emphasizing private-sector stablecoin development and dollar-backed tokens like USDT and USDC.

For crypto traders, Selig's declaration removes a long-standing regulatory overhang. A federal CBDC could have reshaped payment infrastructure, competed with existing stablecoins, and potentially given the government direct visibility into retail transactions. That scenario is now dead, at least for the foreseeable future.

But Selig's comments also underscore a broader regulatory posture. The CFTC, which oversees derivatives markets and has taken an active role in crypto enforcement, will not be the agency to launch a digital dollar. That leaves the door open for other agencies – or for Congress – but Selig's blunt language suggests the White House is aligned against it.

Market participants should watch for the digital asset working group's next formal statement or any legislative proposals. Selig's interview is the clearest indicator yet that a US CBDC is off the table, but it does not mean the regulatory landscape is settling. The working group's agenda on stablecoins, custody, and market structure remains the key catalyst to track.