Congressman Warren Davidson warned that the cryptocurrency industry has abandoned Bitcoin's (BTC) original goal as an unauthorized payment system, in favor of account-based systems that allow for monitoring.
The Republican from Ohio stated in a New Year's message that regulatory momentum favors centralized frameworks rather than decentralization.
Davidson specifically criticized the recently enacted GENIUS Act for establishing what he termed a 'wholesale CBDC' framework.
The stablecoin legislation was passed by both chambers and became law on July 18, 2025.
What happened
Davidson claimed that the promise of Bitcoin was "a peer-to-peer, permissionless payment system," as envisioned by its creator Satoshi Nakamoto.
He argued that the current regulation creates a "account-based domination" that conditions access to money through third parties.
The GENIUS Act established federal oversight of payment stablecoins, requiring 100% coverage by reserves in US dollars or Treasury securities.
The law prohibits non-bank stablecoin issuers from paying interest and imposes the technical ability to freeze or seize tokens by legal order.
Davidson indicated that the broader Digital Asset Market Clarity Act awaits Senate approval after being passed by the House with a vote of 294 to 134 in July.
He predicted that any version from the Senate would offer only "cosmetic" protections for self-defense rights.
Also read: Ethereum Co-Founder Calls For Renewed Focus On Core Mission In 2026
Why it matters
Davidson's criticism reflects the ongoing tension within the cryptocurrency industry between regulatory clarity and decentralization principles.
The congressman warned that digital identity requirements and central bank digital currencies represent "existential threats" to financial freedom.
He called for a complete rejection of third-party surveillance or, failing that, strong legal protections for privacy-focused architectures like Bitcoin and Zcash (ZEC).
Davidson urged his constituents to pressure Congress to completely ban CBDCs, prohibit digital identity, and protect self-defense rights.
