Sponsors (2)
The bill reduces U.S. exposure to foreign CBDC-related surveillance and sanctions risks and clarifies regulatory scope for MSBs, but at the cost of higher compliance and transaction frictions that could raise costs, disrupt legitimate cross-border payments with China, and risk migration to less-regulated channels.
Money services businesses (including payment processors) are barred from transacting in Chinese-issued CBDC, reducing U.S. exposure to potential foreign surveillance and sanction-evasion risks.
Regulatory scope is clarified by tying 'money services business' to the existing FinCEN definition, reducing legal ambiguity and compliance uncertainty for covered firms.
Money services businesses that would have processed cross-border CBDC transfers may lose revenue or face new compliance costs, potentially raising prices for customers.
The ban could complicate legitimate remittances and commercial transactions with China if CBDC instruments are used, disrupting payment options for businesses and individuals engaged in China trade or transfers.
Limiting regulated MSB activity in a foreign CBDC market risks pushing some cross-border activity into less-regulated channels, reducing transparency and potentially increasing illicit finance unless enforcement and alternatives are provided.
Based on analysis of 2 sections of legislative text.
Prohibits U.S. money services businesses from engaging, directly or indirectly, in transactions involving a CBDC issued by the People’s Republic of China.
Official title: Prohibit money services businesses from engaging in any transaction that involves a central bank digital currency issued by the People's Republic of China, and for other purposes.
Introduced May 20, 2026 by Richard Lynn Scott · Last progress May 20, 2026
Prohibits U.S. money services businesses from engaging, directly or indirectly, in any transaction that involves a central bank digital currency (CBDC) issued by the People’s Republic of China. The bill defines “money services business” by reference to federal regulations and adds a new statutory prohibition into title 31 of the U.S. Code.