US Senator Bill Hagerty has accused the Securities and Exchange Commission (SEC) of attempting to eliminate competition for a potential federal government-issued central bank digital currency (CBDC) by targeting cryptocurrency platforms like Coinbase and Binance with lawsuits.

Hagerty, who chairs the Senate Subcommittee on Economic Policy, believes that the SEC's actions are hindering market innovation and paving the way for a CBDC that would give the federal government unprecedented insight into citizens' financial activities. He has introduced legislation aimed at providing clarity in the stablecoin market without stifling innovation.