Sponsor
Warren Davidson
Representative · R-OH
Representative · R-OH
The bill centralizes U.S. efforts to defend the dollar and modernize oversight of digital payments—strengthening economic and sanctions tools and coordination—while raising risks of trade friction, retaliation, added taxpayer costs, and privacy/sovereignty concerns.
Financial institutions and U.S. exporters: coordinated diplomacy seeks to preserve the dollar's global role, supporting stable demand for dollar‑denominated transactions and reducing transaction frictions for dollar-based trade and finance.
Taxpayers and financial institutions: aligning sanctions and foreign policy with monetary security can make sanctions more effective and protect dollar-based enforcement mechanisms.
State and local governments (and federal agencies): establishing a single U.S. coordinating office improves interagency coordination and enables strategic planning to address threats to the dollar's preeminence.
Small businesses and financial institutions engaged in cross-border trade: efforts to restrict foreign CBDCs or non‑dollar payment systems could complicate international commerce and limit access to diversified payment rails.
Financial institutions and taxpayers: aggressively aligning sanctions with monetary security risks politicizing access to global financial systems and could invite retaliatory economic measures.
Taxpayers: creating and staffing a new State Department office will increase federal spending paid for by taxpayers.
Based on analysis of 2 sections of legislative text.
Establishes a State Department office to coordinate U.S. diplomatic strategy to preserve dollar dominance and address CBDCs, stablecoins, and VASPs.
Official title: To establish the Office of Strategic Currency Diplomacy in the Department of State.
Introduced September 4, 2025 by Warren Davidson · Last progress September 4, 2025
Creates an Office of Strategic Currency Diplomacy inside the State Department’s Bureau for Commercial Diplomacy to lead U.S. efforts to preserve the U.S. dollar’s global role. The new office will coordinate policy with Treasury, Commerce, and intelligence agencies; evaluate foreign central bank digital currencies (CBDCs), stablecoins, and virtual asset service providers (VASPs); align sanctions and foreign policy with monetary-security goals; and represent the U.S. in international engagements on these issues. The office will advise the Assistant Secretary for Commercial Diplomacy, develop strategic plans and programs whose findings feed into the State Department’s Biannual Economic Security Report, and monitor and counter foreign efforts to undermine dollar-denominated payment and financial systems.