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Treasury opposes Fed CBDC, says outbound investment screening is underway
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Summary
Secretary Bissett told the subcommittee he opposes a Federal Reserve central bank digital currency and described an "outbound security" program that is beginning to give the administration visibility on U.S. investments involving China; members sought commitments on enforcement and timelines.
Representative Edwards asked Treasury about central bank digital currency (CBDC) and whether the administration supports legislation to block a Fed‑issued CBDC. Secretary Scott Bissett said the administration prefers digital assets to remain in the private sector and called a CBDC "a sign of weakness, not strength." He added, "No, sir" when asked whether he supports the Federal Reserve issuing such a currency.
Members also asked about outbound investment screening designed to restrict U.S. investment in sectors that could benefit the People—s Republic of China. Representative DeLauro and others pressed for a clear commitment. Bissett said the outbound security program "just began a few months ago, and we are learning and we anticipate gaining important visibility into U.S. persons investments involving PRC entities." He said the department supports rigorous screening and asked Congress to allow the process to inform durable legislation.
Committee members said they want legislation to be "foolproof and lasting," and urged Treasury to enforce the executive order and provide periodic briefings. The secretary said he had previously signaled support for a rigorous outbound screening process and that Treasury is evaluating what works and what changes are needed before endorsing a legislative framework.
Lawmakers asked for a timeline, enforcement metrics and clarity on which sectors will be controlled; the committee requested written assessments and suggested close coordination between Treasury and Congress on any statutory reforms.
