No CBDC Act

# No CBDC Act Summary **What the Bill Would Do:** This bill would prevent the Federal Reserve, the Treasury Department, and other federal agencies from creating or using a central bank digital currency (CBDC)—a digital version of U.S. currency that would be issued and managed by the government. If passed, it would essentially ban the federal government from developing this type of digital money system. **Who It Affects and Key Provisions:** The bill would primarily affect federal financial institutions and policymakers. It applies to the Federal Reserve, Federal Reserve Banks, the Treasury Department, and other relevant agencies.

By prohibiting them from issuing or operating CBDCs, the bill would restrict the government's ability to modernize its currency system in this way. This affects discussions about whether the U.S. should develop digital currency alternatives as other countries have explored. **Current Status:** As of now, the bill remains in committee and has not been voted on by the full Senate. Senator Mike Lee (R-UT) introduced it, reflecting concerns some lawmakers have about central bank digital currencies, though opinions on CBDCs vary across the political spectrum based on different priorities regarding privacy, financial innovation, and government control.