S.Amdt. 2272

As an analyst looking out for you, let us break down what Mr. Cruz submitted with this amendment to bill S. 1582 in plain English. The amendment is all about putting strict stop-gaps on a central bank digital currency, or any digital asset that is substantially similar under any other name or label.

Key Changes to the Law

• Federal Reserve Banks: The amendment stops Federal Reserve banks from offering products or services directly to an individual, maintaining an account for an individual, and issuing a central bank digital currency directly or indirectly through a financial institution or other intermediary.

• Board of Governors: The amendment stops the Board of Governors of the Federal Reserve System from testing, studying, developing, creating, or implementing a central bank digital currency. It also stops the Board and the Federal Open Market Committee from using a central bank digital currency to implement monetary policy.

• Exceptions: The rules do not stop any dollar-denominated currency that is open, permissionless, and private, and fully preserves the privacy protections of United States coins and physical currency.

• Sense of Congress: It states the official view of Congress that the Board of Governors of the Federal Reserve does not have the authority to issue a central bank digital currency, and will not have that authority unless Congress grants it.