Sponsors
The bill preserves Congressional control and near‑term privacy protections by blocking any Fed issuance of a CBDC without authorization, but it does so at the cost of reducing Federal Reserve flexibility, slowing potential payment‑system improvements, and risking a shift of innovation to less‑regulated private alternatives.
Taxpayers and middle-class families retain Congressional control over any new national form of money (including a CBDC), because the bill requires Congress to authorize issuance rather than allowing unilateral Federal Reserve action.
Taxpayers and middle-class families get stronger privacy and civil‑liberties protections in the near term because the bill prevents an immediate Fed-issued digital currency that could change payment surveillance or access.
Banks and other financial institutions avoid near‑term operational disruption and uncertainty because the Fed cannot issue a CBDC until Congress evaluates and authorizes it.
Financial institutions and taxpayers face reduced Federal Reserve operational independence because the bill affirms Congressional exclusivity over monetary issuance, which could invite future legislative constraints on Fed policymaking.
Taxpayers and financial institutions could lose timely access to novel monetary or crisis‑response tools because the bill may constrain the Fed's flexibility to deploy CBDC‑based or other rapid interventions during emergencies.
Financial institutions may face greater political oversight or interference because restating the Fed's fiscal‑agent role could be used to justify increased Treasury scrutiny of Reserve Bank operations.
Based on analysis of 3 sections of legislative text.
Requires explicit congressional authorization before the Federal Reserve or Treasury may issue a central bank digital currency and adds statutory definitions of CBDC.
Introduced July 16, 2025 by Jake Auchincloss · Last progress July 16, 2025
Blocks the Federal Reserve and the Secretary of the Treasury from issuing or causing the issuance of a central bank digital currency (CBDC) unless Congress passes a law that explicitly authorizes it. The bill adds statutory definitions of “central bank digital currency” and records findings about Congress’s constitutional power to coin money and the Federal Reserve’s role as fiscal agent and depository for the Treasury. The measure does not create new programs, appropriate funds, or set implementation timelines; it is a narrow statutory prohibition and definitional change that would require future congressional approval before a U.S. CBDC could be issued.