Chinese CBDC Prohibition Act of 2026
SB 4601, the Chinese CBDC Prohibition Act of 2026, would bar U.S. money services businesses from directly or indirectly engaging in any transaction involving a central bank digital currency issued by the People’s Republic of China. The bill defines the covered entities by reference to the existing federal regulatory definition of a money services business under Treasury regulations.
The measure would add a new section to title 31 of the U.S. Code governing money services businesses and would also make a conforming update to the table of contents for that chapter. In practical terms, it would create a federal prohibition aimed at U.S.-regulated payment and money transmission firms, limiting their ability to process, facilitate, or otherwise handle transactions tied to a Chinese government-issued digital currency.
If enacted, the bill would amend federal money services law in title 31 by creating a new statutory restriction on transactions involving a foreign central bank digital currency, specifically one issued by China. It would affect money transmitters, payment processors, and other entities classified as money services businesses, potentially requiring compliance screening and transaction-blocking measures for any China-linked CBDC activity.
The available record shows no committee transcript, debate, or vote history, so there is no documented floor or committee sentiment beyond the bill’s introduction and referral. Based on the text and title, the bill appears to reflect a security- and sanctions-oriented posture toward Chinese digital currency, but the legislative record provided does not show support or opposition from members.
The main policy issue is whether the federal government should preemptively prohibit U.S. financial intermediaries from touching a foreign sovereign digital currency, even indirectly. Potential points of contention include the breadth of the phrase “directly or indirectly,” the compliance burden on money services businesses, and whether the bill is an appropriate response to geopolitical and financial-security concerns involving China’s digital currency system. No specific objections or supporters are identified in the provided materials.