How HR 3402 changes current law

Compared against current U.S. Code AI-generated reading aid — verify against the official bill.

The bill introduces new sections to prohibit the issuance of a central bank digital currency by the Federal Reserve and the Treasury without Congressional authorization.

• 12 U.S.C. 221

  SEC. 16A. CENTRAL BANK DIGITAL CURRENCY. (a) In General.--The Board of Governors of the Federal Reserve may not, absent Congressional authorization, issue a central bank digital currency. (b) Central Bank Digital Currency Defined.--In this section, the term 'central bank digital currency' means a form of digital money or monetary value, denominated in the national unit of account, that is a direct liability of the Federal Reserve.

  This addition prohibits the Federal Reserve from issuing a central bank digital currency without Congressional approval.

• 31 U.S.C.

  SEC. 317. CENTRAL BANK DIGITAL CURRENCY. (a) In General.--The Secretary of the Treasury may not, absent Congressional authorization, direct the Board of Governors of the Federal Reserve to issue a central bank digital currency. (b) Central Bank Digital Currency Defined.--In this section, the term 'central bank digital currency' means a form of digital money or monetary value, denominated in the national unit of account, that is a direct liability of the central bank.

  This addition prohibits the Secretary of the Treasury from directing the Federal Reserve to issue a central bank digital currency without Congressional authorization.