SB 464, the “No Central Bank Digital Currency Act,” would amend the Federal Reserve Act to bar Federal Reserve banks, the Board of Governors, the Treasury Department, and other acting entities from minting or issuing a central bank digital currency (CBDC) directly to individuals or digital currency intermediaries. It also prohibits offering CBDC-related products or services directly to individuals and bars the maintenance of individual CBDC accounts, including accounts held through custodial intermediaries, specially designated accounts at digital currency intermediaries, or supervised commercial banks.
The bill further prohibits Federal Reserve banks from holding U.S.-issued digital currencies as assets or liabilities on their balance sheets, and from using such digital currencies to satisfy Federal Reserve requirements under section 2A of the Federal Reserve Act. In practical terms, the measure is designed to prevent the federal government’s central banking system from creating or operating a retail CBDC infrastructure.
Impact
If enacted, SB 464 would significantly limit federal authority to issue or administer a retail central bank digital currency and would amend the Federal Reserve Act accordingly. It would affect the Federal Reserve System, the Treasury Department, and any federal or federally directed entity involved in CBDC issuance or account administration, while also constraining how Federal Reserve banks could treat digital currencies on their balance sheets and in reserve-related operations.
Sentiment
Based on the bill’s sponsorship and the absence of recorded committee debate or votes in the provided materials, the sentiment appears strongly supportive among the sponsors and aligned with a precautionary, anti-CBDC policy stance. The bill’s title and text indicate a clear intent to block federal retail CBDC development rather than regulate it, suggesting support from lawmakers concerned about government overreach, privacy, or financial surveillance. No contrary sentiment is documented in the provided record.
Contention
The main point of contention is whether the federal government should be allowed to issue or directly manage a CBDC at all. Supporters of the bill are likely to argue that a CBDC could threaten privacy, expand federal control over personal finance, or displace private banking functions. Opponents would likely contend that prohibiting CBDC issuance could limit innovation, reduce the Federal Reserve’s policy flexibility, or prevent the United States from keeping pace with other countries exploring digital currency systems. No specific committee objections or amendments are included in the provided materials.
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.