Congress locks the Fed out of digital currency—for now
H.R. 4438 — Power of the Mint Act · Filed by Jake Auchincloss (D-MA) · Introduced Jul 16, 2025 · Referred to committee
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What it does
This bill prohibits the Federal Reserve and the Treasury Secretary from creating a central bank digital currency (CBDC)—a digital form of money issued directly by the Fed—without explicit Congressional approval. It adds two new legal barriers: one blocking the Fed from issuing CBDC on its own, and another blocking the Treasury from directing the Fed to do so. The bill asserts that only Congress has constitutional authority over money creation.
Why we flagged it
The bill's operative mechanism is a procedural lock: it requires Congressional authorization before two executive-branch entities can pursue a specific monetary technology. This is fundamentally about preserving legislative control over monetary innovation, not about the merits of CBDC itself.
What the text implies
- The bill does not ban CBDC research, pilot programs, or interagency study—only issuance. The Fed and Treasury can continue exploring CBDC without violating this statute, provided they do not issue it to the public.
- By requiring Congressional authorization, the bill shifts the burden of proof: any future CBDC would need affirmative legislative action, not just regulatory discretion. This may slow adoption but also ensures public debate.
The full analysis lists 4 implications of this text.
Who stands to gain
cryptocurrency and blockchain companies (by foreclosing a potential Fed competitor); private payment processors and fintech firms (by preserving their market space)