Bill · S. 464· Senate(119-S-464)
No CBDC Act
- Introduced
- 2/6/2025
- Last activity
- 2/6/2025 — Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- Sponsored by
- Mike Lee
- Cosponsors
- - 2 - 0
- Introduced
- In Committee
What this bill would do
This bill, titled the "No Central Bank Digital Currency Act," aims to amend the Federal Reserve Act. The primary purpose is to limit the ability of Federal Reserve banks to issue a central bank digital currency. It prohibits various government entities from minting or issuing such currency directly to individuals. Additionally, it restricts these entities from offering related products or services directly to individuals. The bill also prevents the maintenance of accounts on behalf of individuals and restricts how Federal Reserve banks handle digital currencies as assets or liabilities.
Yes· 3 of 7
Does this protect people from being watched or searched?+6
The bill prevents the government from maintaining digital currency accounts directly for individuals, which limits potential surveillance of individual transactions.
Does this give people more control over their personal data?+5
By prohibiting direct government accounts and central bank digital currency issuance, the bill limits government-held digital financial records.
Does this make what the government does easier for the public to see?+2
The bill places explicit prohibitions on how the Federal Reserve and Treasury interact with individual digital currency accounts.
The opposite
Does this give the federal government more power?-3
The bill reduces the scope of the Federal Reserve's potential authority to issue and manage digital currency.
Would households on low incomes be better off under this?-1
The bill may prevent the development of direct government-issued digital payment systems that could serve low-income populations.
Who it would affect, and how
Potential Positive Impacts for People
-
Restriction of direct digital currency issuance: By prohibiting the minting or issuing of a central bank digital currency directly to an individual or through a custodial intermediary, the bill limits the direct involvement of the Federal Reserve in individual digital currency transactions (Section 2).
-
Prohibition of individual accounts: The bill prevents the Board, the Secretary of the Treasury, or other agencies from maintaining accounts on behalf of an individual, including those held at digital currency intermediaries or supervised commercial banks (Section 2).
-
Limits on related services: The bill restricts government entities from offering related products or services directly to an individual (Section 2).
Potential Negative Impacts for People
- Restrictions on Federal Reserve assets: The bill prevents Federal reserve banks from holding digital currencies minted or issued by the United States Government as assets or liabilities on their balance sheets, which may impact how the bank fulfills requirements under section 2A (Section 2).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Education And Technology
- Improves Data Privacy+5
- Governance And Ideology
- Improves Privacy Rights+6Improves Government Transparency+2Increases Federal Power-3
- Demographic And Interest Groups
- Good For High Income Households+1Good For Middle Class Households+1Good For Urban Residents+1Good For Low Income Households-1
- Economy And Finance
- Improves Fiscal Responsibility+1
- 2/6/2025
- Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- 2 Cosponsors added.
- Introduced in Senate
3 bills Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
Ted CruzRepublican · Texas
Rick ScottRepublican · Florida