Is The Bill "No CBDC Act" Crypto Friendly?
Description:
This bill, known as the "No CBDC Act," amends the Federal Reserve Act to explicitly prohibit Federal Reserve banks, the Board of Governors, the Secretary of the Treasury, or any other related agency from minting or issuing a central bank digital currency (CBDC). The prohibition extends to issuing CBDCs directly to individuals, through custodial intermediaries, or offering related services. Furthermore, it bars Federal Reserve banks from holding any United States government-issued digital currencies as assets or liabilities on their balance sheets.
Date Introduced:
Status:
Introduced and Sponsored
Stance on Crypto:
Very Pro-Crypto
Links:
Primary Commentary:
Primary Commentary:
The bill's direct prohibition on the issuance of a central bank digital currency (CBDC) is a significant development from the perspective of the crypto industry. CBDCs are generally viewed negatively within the crypto community due to concerns about increased state power to surveil and control individual financial transactions. By preventing the creation of a government-controlled digital currency, this legislation helps to mitigate risks such as financial privacy erosion, potential debanking of individuals, and the use of financial tools for social control. This action aligns with the crypto industry's preference for decentralized financial systems and privately issued digital assets, such as stablecoins, which operate outside direct government issuance. The bill therefore protects the operational space for existing cryptocurrencies and promotes a financial ecosystem less susceptible to centralized government intervention.
Congress members who support this bill
Cosponsors
Additional Commentary
No additional commentary for this bill yet