HB1430, titled the No Central Bank Digital Currency Act or No CBDC Act, would amend the Federal Reserve Act to prohibit Federal Reserve banks, the Board of Governors, the Treasury Department, and any other covered federal entity from minting or issuing a central bank digital currency directly to individuals. The bill also bars issuance through custodial intermediaries or digital currency intermediaries, and prohibits these entities from offering related products or services directly to individuals or maintaining individual accounts for CBDC purposes.
In addition to restricting direct retail CBDC activity, the bill would prevent Federal Reserve banks from holding U.S.-issued digital currencies as assets or liabilities on their balance sheets, and from using such currencies to satisfy reserve requirements under section 2A of the Federal Reserve Act. The measure is framed as a broad limitation on the federal government’s ability to create or distribute a retail digital dollar.
Impact
If enacted, the bill would significantly narrow federal authority over central bank digital currency by amending the Federal Reserve Act and limiting the operational role of the Federal Reserve, Treasury, and related entities in any retail CBDC system. It would affect how federal digital currency could be issued, held, accounted for, and used in monetary operations, while leaving private-sector digital assets and non-CBDC payment systems outside its direct scope. The bill would primarily affect the Federal Reserve System, Treasury, digital currency intermediaries, supervised commercial banks, and individuals who might otherwise receive or hold a government-issued digital currency account.
Sentiment
The available record shows the bill was introduced and referred to the House Committee on Financial Services, with no recorded committee transcript or vote history in the provided materials. Based on the bill’s text and title, the measure appears to reflect a skeptical or restrictive stance toward a federal retail CBDC, emphasizing limits on government involvement in digital currency issuance and individual accounts. Because there are no recorded debates or votes here, broader legislative sentiment cannot be measured from the provided context.
Contention
The central point of contention is whether the federal government should be allowed to issue a retail central bank digital currency at all, especially one accessible directly to individuals or through intermediaries. Supporters of the bill are likely to argue that a CBDC could raise privacy, surveillance, financial disintermediation, or government overreach concerns, while opponents would likely view the restrictions as unnecessarily constraining future monetary innovation and payment modernization. The bill’s broad language also reaches Treasury and other agencies, which could be a point of concern for those who want flexibility in designing any future digital dollar framework.
To amend the FISA Amendments Act of 2008 to extend the authorities of title VII of the Foreign Intelligence Surveillance Act of 1978, and for other purposes.