Federal

No CBDC Act

Source: Congress.gov · 386 words in original text

What This Bill Does

This bill amends the Federal Reserve Act to prevent Federal Reserve banks and other government agencies from creating or distributing a central bank digital currency (a digital form of money issued by the government) directly to individuals. The bill also stops these entities from offering services related to such digital currency or holding digital currencies as financial assets.

Who It Affects

Federal Reserve banks, the Federal Reserve Board, the Secretary of the Treasury, other federal agencies, individuals who might receive digital currency, digital currency intermediaries (private companies that help manage digital money), and supervised commercial banks.

Key Provisions

* Federal Reserve banks, the Federal Reserve Board, the Secretary of the Treasury, other agencies, and entities working on their behalf cannot create or issue a central bank digital currency directly to any individual, whether through a middleman (custodial intermediary) or a digital currency intermediary (Sec. 2) * These entities cannot offer products or services related to central bank digital currency directly to individuals (Sec. 2) * These entities cannot maintain accounts on behalf of individuals for central bank digital currency, including special accounts at digital currency intermediaries or supervised commercial banks (Sec. 2) * Federal Reserve banks cannot hold digital currencies created by the United States Government as assets or liabilities on their financial statements or use them to meet requirements (Sec. 2)

What Changes

If this becomes law, Federal Reserve banks and federal agencies lose the authority to directly distribute digital currency to Americans or manage digital currency accounts for individuals.

Important Definitions

None defined in the bill text.

II 118TH CONGRESS 1ST SESSION S. 967 To amend the Federal Reserve Act to limit the ability of Federal Reserve banks to issue central bank digital currency. IN THE SENATE OF THE UNITED STATES MARCH 23, 2023 Mr. LEE (for himself, Mr. BRAUN, and Mr. CRUZ) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs A BILL To amend the Federal Reserve Act to limit the ability of Federal Reserve banks to issue central bank digital currency. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘No Central Bank Dig- 4 ital Currency Act’’ or the ‘‘No CBDC Act’’. 5 SEC. 2. CENTRAL BANK DIGITAL CURRENCY. 6 Section 13 of the Federal Reserve Act is amended 7 by adding after the 14th undesignated paragraph (12 8 U.S.C. 347d) the following: 9 VerDate Sep 11 2014 22:19 Apr 05, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S967.IS S967 pbinns on DSKJLVW7X2PROD with $$_JOB 2 •S 967 IS ‘‘No Federal reserve bank, the Board, the Sec- 1 retary of the Treasury, any other agency, or any en- 2 tity directed to act on behalf of the Federal reserve 3 bank, the Board, the Secretary, or other agency, 4 may mint or issue a central bank digital currency di- 5 rectly to an individual (including central bank digital 6 currency issued to an individual through a custodial 7 intermediary) or a digital currency intermediary, 8 offer related products or services directly to an indi- 9 vidual, or maintain an account on behalf of an indi- 10 vidual (including an account in a specially des- 11 ignated account at a digital currency intermediary or 12 supervised commercial bank). No Federal reserve 13 bank may hold digital currencies minted or issued by 14 the United States Government as assets or liabilities 15 on a balance sheet of the bank or use such digital 16 currencies as part of fulfilling the requirements 17 under section 2A.’’. 18 Æ VerDate Sep 11 2014 22:19 Apr 05, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6301 E:\BILLS\S967.IS S967 pbinns on DSKJLVW7X2PROD with $$_JOB

Important: This plain English summary was generated by AI and is provided for informational purposes only. It is not legal advice. Always consult the official bill text on Congress.gov or a qualified attorney for legal matters.