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US Representative Warren Davidson warns the US is drifting toward a permissioned and heavily surveilled financial system, arguing that recent crypto legislation undermines the industry’s original promise of permissionless, private money.In a post on X on Wednesday, Davidson <a href="https://x.com/WarrenDavidson/status/2006385088162881709" rel="noopener noreferrer nofollow">criticized</a> the stablecoin-focused GENIUS Act, arguing it enables a wholesale version of a US dollar central bank digital currency (CBDC) that could be used for “surveillance, coercion, and control.”He also fears a digital ID system will be rolled out that forces Americans to get government permission to use their own money.“Do not be deceived,” Davidson said.“We need to reject this globalist surveillance state and return to first principles,” he added, reminding his 86,600 X followers that <a href="https://cointelegraph.com/news/this-is-how-satoshi-nakamoto-envisioned-crypto-working" rel="noopener noreferrer nofollow">Bitcoin’s original promise</a> was less about being an illiquid, inflation-hedging asset, and more about being a permissionless, peer-to-peer payment system.<figure><img src="https://s3.cointelegraph.com/uploads/2026-01/019b76ec-121f-7c41-8591-929d4be48c7f.png" title="" alt="Digital ID, CBDCs risk turning US into ‘surveillance state,’ lawmaker says"><figcaption style="text-align: center;">Source: <a href="https://x.com/WarrenDavidson/status/2006385088162881709" rel="noopener noreferrer nofollow">Warren Davidson</a></figcaption></figure>Davidson has been one of the fiercest advocates of permissionless money, self-custody and privacy in Congress since the Republican began representing Ohio in 2016. He has introduced various legislation aimed at <a href="https://cointelegraph.com/news/rep-davidson-to-introduce-legislation-to-fire-sec-boss-gensler-for-crypto-overreach" rel="noopener noreferrer nofollow">restricting state control</a> over crypto, <a href="https://cointelegraph.com/news/rep-davidson-to-introduce-legislation-to-fire-sec-boss-gensler-for-crypto-overreach" rel="noopener noreferrer nofollow">criminalizing CBDCs</a> and even one that sought to fire then Securities and Exchange Commission chair, <a href="https://cointelegraph.com/news/rep-davidson-to-introduce-legislation-to-fire-sec-boss-gensler-for-crypto-overreach" rel="noopener noreferrer nofollow">Gary Gensler.</a><h2 id="davidson-isn-t-alone-in-this-fight">Davidson isn’t alone in this fight</h2>Representative Marjorie Taylor Greene <a href="https://x.com/repmtg/status/2006410716551524473" rel="noopener noreferrer nofollow">said</a> she voted no to the GENIUS Act, arguing that it hands power over to the banks while opening a “back door” for a CBDC.“The real danger lies in Digital ID, CBDC, and no self custody,” Greene said, echoing Davidson’s remarks.<h2 id="clarity-act-more-promising-but-its-impact-may-be-limited">CLARITY Act more promising, but its impact may be limited</h2>Both Davidson and Greene appeared more supportive of the CLARITY Act, which is awaiting passage in the Senate and is <a href="https://cointelegraph.com/news/banking-committee-market-structure-markup-january" rel="noopener noreferrer nofollow">expected to be marked up</a> in early 2026.Related: <a href="https://cointelegraph.com/news/trump-media-release-reward-tokens" rel="noopener noreferrer nofollow">Trump Media plans 1:1 blockchain token rewards for shareholders</a>“CLARITY promises to fix some of the deficiencies in GENIUS by protecting self-custody and incorporating other House provisions,” Davidson said.But with the GENIUS Act in effect, Davidson said any changes to <a href="https://cointelegraph.com/news/australia-s-search-id-goes-into-force-ireland-lobbies-to-ban-anonymity" rel="noopener noreferrer nofollow">individual freedom</a> coming from the CLARITY Act will be largely cosmetic.<blockquote> “The future of money will determine the future. Without massive divine intervention, that future looks permissioned, surveilled, and debased.”
</blockquote>Magazine: <a href="https://cointelegraph.com/magazine/jack-dorsey-could-he-be-satoshi-nakamoto-big-questions/" rel="noopener noreferrer nofollow">6 reasons Jack Dorsey is definitely Satoshi… and 5 reasons he’s not</a>

Digital ID, CBDCs risk turning US into ‘surveillance state,’ lawmaker says

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