House Republicans' push for an anti-Central Bank Digital Currency (CBDC) bill could disrupt bipartisan support for a stablecoin bill, warned investment bank TD Cowen.

The CBDC Anti-Surveillance State Act, introduced by House Majority Whip Tom Emmer, R-Minn., last year, aims to prevent the Federal Reserve from directly issuing a CBDC to individuals. Despite advancing out of the House Financial Services Committee in September, the bill faced significant criticism from Democrats.

Reports suggest that House conservatives are considering voting for the CBDC bill alongside a sought-after stablecoin bill. However, this strategy isn't officially led by Rep. Emmer.

TD Cowen's Washington Research Group, led by Jaret Seiberg, expressed concern that tying a ban on a digital dollar to stablecoin legislation could jeopardize bipartisan support. Democrats generally see value in exploring a central bank cryptocurrency.

Efforts to regulate stablecoins have faced challenges, with disagreements persisting over primary regulatory authority. While the stablecoin bill advanced out of the House Financial Services Committee, disputes remain over state regulator involvement without Federal Reserve input.

TD Cowen emphasized the complexities of passing any legislation and viewed developments complicating the stablecoin bill as narrowing its path to enactment.

Although the central bank has explored the CBDC's potential, officials have refrained from endorsing it without congressional approval. Fed Chair Powell stated last month that the Fed was far from making a recommendation on or adopting a CBDC.

The Heritage Foundation has advocated for passing a CBDC bill and warned lawmakers of potential repercussions on their conservative ratings if they don't support it. Sen. Ted Cruz, R-Texas, introduced a bill to ban CBDCs, supported by the Heritage Foundation and the Blockchain Association.