The Power of the Mint Act would prohibit the Federal Reserve and the Treasury Department from issuing a central bank digital currency (CBDC) without explicit authorization from Congress. The bill defines a CBDC as digital money denominated in U.S. currency that is a direct liability of the Federal Reserve. The legislation is based on the constitutional principle that only Congress holds the power to coin money and regulate its value, and it aims to ensure that any decision to create a digital version of U.S. currency must come directly from lawmakers rather than being undertaken by federal agencies acting alone. The bill applies to both the Federal Reserve's independent actions and any directive from the Treasury Secretary to the Federal Reserve. No specific funding or implementation timeline is outlined in the bill, as it primarily serves to restrict regulatory authority rather than authorize new spending or programs.
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