Sponsors
The bill aims to strengthen U.S. monetary security and the dollar's global role through a dedicated coordinating office and targeted policy on virtual assets, trading improved sanctions effectiveness and financial stability for higher federal costs, potential trade frictions, retaliatory risks, and privacy/sovereignty concerns.
U.S. businesses and consumers benefit from efforts to preserve the dollar's global role, supporting stable demand for dollar-denominated transactions and reducing exchange/friction risks in international trade.
Taxpayers and the national security apparatus benefit because aligning sanctions and foreign policy with monetary security can make sanctions more effective and protect dollar-based enforcement mechanisms.
Consumers, financial institutions, and small businesses gain from directed evaluation of virtual assets and stablecoins, which helps anticipate risks and inform policies to protect the financial system and users.
Financial institutions and taxpayers could face increased risk if aggressive linking of sanctions to monetary security politicizes financial access and provokes retaliatory economic measures.
Small businesses and financial firms that rely on diverse international payment rails may face higher costs or operational complications if the U.S. seeks to restrict foreign CBDCs or non-dollar payment systems.
Users and partner countries may see increased surveillance and diplomatic pressure on foreign payment systems and VASPs, raising privacy and sovereignty concerns.
Based on analysis of 2 sections of legislative text.
Creates an Office of Strategic Currency Diplomacy at State to lead diplomacy and coordination to protect the dollar, address stablecoins/VASPs, and monitor foreign CBDCs.
Introduced September 4, 2025 by Warren Davidson · Last progress September 4, 2025
Creates an Office of Strategic Currency Diplomacy inside the State Department to lead and coordinate U.S. diplomatic efforts to preserve the U.S. dollar’s global role. The Office will focus on countering foreign efforts to weaken the dollar, coordinating with allies to protect dollar-denominated payment and financial systems, assessing virtual assets (including stablecoins) and foreign CBDCs, aligning sanctions and foreign policy with monetary security, and serving as the principal advisor and U.S. representative on related international engagements. The Office is placed in the Bureau for Commercial Diplomacy and reports to the Assistant Secretary for Commercial Diplomacy. It will coordinate across Treasury, Commerce, the Office of the Director of National Intelligence, and other agencies, and will contribute findings to the State Department’s Biannual Economic Security Report. The text does not specify funding or appropriations for the Office.