This part adds a section to the law that set up the central bank. It bars the central bank from issuing a digital dollar. One kind of open, private digital dollar is carved out. The bar stops working at the end of 2030. Nothing here lets the central bank issue one without Congress.
“``(A) is denominated in United States dollars; ``(B) is a United States currency; ``(C) is a direct liability of the Federal Reserve System; and ``(D) is widely available to the general public.”
The new section 16A of the Federal Reserve Act defines a central bank digital currency as a digital asset that is denominated in United States dollars, is a United States currency, is a direct liability of the Federal Reserve System, and is widely available to the general public. Digital asset takes its meaning from section 2 of the GENIUS Act.
What the document actually says
“``(A) is denominated in United States dollars; ``(B) is a United States currency; ``(C) is a direct liability of the Federal Reserve System; and ``(D) is widely available to the general public.”
That sentence, in plain words
It is counted in United States dollars. It is a currency of the United States. The central bank owes it directly. Anybody can get it.
What this is about
All four tests must be met at once. A thing that fails any one of them is not covered. Only then does the ban that follows apply.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “may not”Who acts: Board of Governors of the Federal Reserve System, Federal reserve banksHow: statuteSec. 1101 in the PDF
What the document says
“the Board of Governors of the Federal Reserve System or a Federal reserve bank may not issue or create a central bank digital currency or any digital asset that is substantially similar to a central bank digital currency directly or indirectly through a financial institution or other intermediary.”
The new section 16A bars the Board of Governors of the Federal Reserve System and any Federal reserve bank from issuing or creating a central bank digital currency, or any digital asset substantially similar to one, whether directly or through a bank or other intermediary.
What the document actually says
“the Board of Governors of the Federal Reserve System or a Federal reserve bank may not issue or create a central bank digital currency or any digital asset that is substantially similar to a central bank digital currency directly or indirectly through a financial institution or other intermediary.”
That sentence, in plain words
The central bank may not issue a digital dollar. It may not create one either. It may not do so through a bank or any other go-between.
What this is about
A digital dollar here means one the central bank itself owes. The ban also reaches anything much like it. Going through a middleman does not get around it.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
“that is open, permissionless, and private, and fully preserves the privacy protections of United States coins and physical currency.”
The new section 16A provides that the prohibition does not reach a dollar-denominated currency that is open, permissionless, and private and that fully preserves the privacy protections of United States coins and physical currency.
What the document actually says
“that is open, permissionless, and private, and fully preserves the privacy protections of United States coins and physical currency.”
That sentence, in plain words
One kind of dollar currency is open. It needs no permission to use. It must guard privacy as well as coins and paper money do.
What this is about
Cash leaves no record of who spent it. This carve-out asks the same of a digital form. If it falls short, the ban applies.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
“This provisions of this section shall cease to be effective on December 31, 2030.”
The new section 16A provides that its provisions cease to be effective on December 31, 2030.
What the document actually says
“This provisions of this section shall cease to be effective on December 31, 2030.”
That sentence, in plain words
This part stops working on December 31, 2030.
What this is about
A sunset is a built-in end date. The ban stops on its own. Congress must act again to keep it going.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “may not be construed”Who acts: Board of Governors of the Federal Reserve SystemHow: statuteSec. 1101 in the PDF
What the document says
“Nothing in this section shall be construed to allow the Board of Governors of the Federal Reserve System to issue a central bank digital currency or any digital”
The new section 16A states that nothing in it may be read as letting the Board of Governors of the Federal Reserve System issue a central bank digital currency, or any digital asset substantially similar to one, directly or indirectly, without authorization by an Act of Congress.
What the document actually says
“Nothing in this section shall be construed to allow the Board of Governors of the Federal Reserve System to issue a central bank digital currency or any digital”
That sentence, in plain words
This part does not give the central bank leave to issue a digital dollar.
What this is about
Only a law passed by Congress could allow one. That holds whether the central bank acts directly or through others. The end date does not change that.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
Each distinct thing the new section 16A does: the definition of a central bank digital currency, the prohibition, the exception, the end date, and the rule of construction.
Nothing the new section does is left out.
The section adds a section to the Federal Reserve Act, which is not indexed here. The definition of a digital asset comes from section 2 of the GENIUS Act, which is likewise not indexed.
