U.S. Lawmaker Warns Cryptocurrency Regulations May Lead to Global Surveillance State

U.S. Representative Warren Davidson Warns of Risks

U.S. Representative Warren Davidson stated that recent cryptocurrency legislation undermines the original promise of the industry to offer a private and permissionless currency. In a post on X, Davidson criticized the GENIUS bill, focused on stablecoins, arguing that it inherently facilitates a version of a digital dollar that could be used for "surveillance, coercion, and control."

He also expressed concern that a digital identification system could be implemented, forcing Americans to seek government permission to access their own money. "Don’t be fooled," Davidson said. "We must reject this globalist surveillance state and return to basic principles," he added, reminding his followers that the initial promise of Bitcoin was more about being a permissionless peer-to-peer payment system than an illiquid asset for inflation protection.

Common Concerns Among Legislators

Davidson is not alone in this endeavor; Representative Marjorie Taylor Greene announced that she voted against the GENIUS bill, arguing that it empowers banks and opens a "backdoor" for a centralized digital currency. "The real danger lies in digital ID, CBDC, and the lack of self-custody," Greene stated, supporting Davidson’s observations.

Outlook on the CLARITY Bill

Both Davidson and Greene have shown more support for the CLARITY bill, which awaits Senate approval and is expected to be discussed in early 2026. "CLARITY promises to address some deficiencies of the GENIUS bill by safeguarding self-custody and incorporating other provisions," said Davidson. However, with the GENIUS bill in force, any changes to individual freedom coming from the CLARITY bill will largely be cosmetic. "The future of money will determine the future. Without massive divine intervention, that future looks like a surveilled and debased system."