Bill Details

S.464 - 119th Congress

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Status
  1. Introduced
  2. Passed House
  3. Passed Senate
  4. To President
  5. Law
Latest action
2025-02-06 - Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Introduced Date
2025-02-06
Policy Area
Finance and Financial Sector
8
0

AI Summary This summary was generated by AI from the bill text. AI can get information wrong.

This bill would stop the Federal Reserve, the Treasury Department, and related government bodies from creating or giving out a central bank digital currency directly to people. It would also bar them from offering services tied to that kind of digital currency, opening or managing accounts for individuals through banks or other intermediaries, or holding U.S.-issued digital currency as part of a Federal Reserve bank’s balance sheet. In simple terms, the bill is meant to prevent the government from making its own digital dollar that ordinary people could use like a personal account or wallet.

  • It would prohibit the Federal Reserve banks and other covered government entities from minting or issuing a digital currency directly to an individual.
  • It would also block issuance through a middleman, such as a custodial intermediary, if the end user is an individual.
  • The bill says the government could not offer related products or services directly to individuals, or maintain accounts for individuals at a digital currency intermediary or supervised bank.
  • It would further prevent Federal Reserve banks from keeping U.S.-issued digital currency as an asset or liability on their balance sheets, or using it to meet reserve-related requirements.

Official Summaries

No Central Bank Digital Currency Act or the No CBDC Act

This bill generally prohibits the Federal Reserve Board, Federal Reserve Banks, the Department of the Treasury, and other agencies from issuing or using a central bank digital currency.

Current Full Text

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 464 Introduced in Senate (IS)]

<DOC>






119th CONGRESS
  1st Session
                                 S. 464

   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

             February 6 (legislative day, February 5), 2025

 Mr. Lee (for himself, Mr. Cruz, and Mr. Scott of Florida) 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 Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``No Central Bank Digital Currency 
Act'' or the ``No CBDC Act''.

SEC. 2. CENTRAL BANK DIGITAL CURRENCY.

    Section 13 of the Federal Reserve Act is amended by adding after 
the 14th undesignated paragraph (12 U.S.C. 347d) the following:
            ``No Federal reserve bank, the Board, the Secretary of the 
        Treasury, any other agency, or any entity directed to act on 
        behalf of the Federal reserve bank, the Board, the Secretary, 
        or other agency, may mint or issue a central bank digital 
        currency directly to an individual (including central bank 
        digital currency issued to an individual through a custodial 
        intermediary) or a digital currency intermediary, offer related 
        products or services directly to an individual, or maintain an 
        account on behalf of an individual (including an account in a 
        specially designated account at a digital currency intermediary 
        or supervised commercial bank). No Federal reserve bank may 
        hold digital currencies minted or issued by the United States 
        Government as assets or liabilities on a balance sheet of the 
        bank or use such digital currencies as part of fulfilling the 
        requirements under section 2A.''.
                                 <all>