US lawmakers push for permanent ban on a digital dollar, warn temporary block isn’t enough

Concerns grow in Congress over privacy, surveillance and the power of a US CBDC

A group of US lawmakers is urging Congress to permanently block the creation of a US central bank digital currency (CBDC), arguing that a temporary ban would only delay the issue rather than solve it.

In a letter sent Friday to House Speaker Mike Johnson and Senate Majority Leader John Thune, Congressman Michael Cloud and 28 other lawmakers called for legislation that would prevent the Federal Reserve from ever issuing a digital dollar. The lawmakers said a CBDC could threaten financial privacy and give the government too much control over citizens’ money.

Their push comes after a proposed amendment to the Federal Reserve Act that would prevent the Fed from issuing a CBDC until 2031. The amendment was included in the “21st Century ROAD to Housing Act” (HR 6644), a broad financial bill recently released by the Senate Committee on Banking, Housing and Urban Affairs.

Source: Ralph Norman

lawmakers say temporary ban falls short

Supporters of the letter argue that simply delaying a CBDC until 2031 does not go far enough. They want a full and permanent prohibition written into law.

According to the lawmakers, a government-issued digital currency could open the door to financial surveillance and give unelected officials greater control over how Americans spend or access their money.

The group also criticized the current amendment for weakening earlier legislation known as the Anti-CBDC Surveillance State Act (HR 1919). That bill, introduced by Congressman Tom Emmer in 2025, sought to stop the Federal Reserve from issuing a CBDC altogether.

While HR 1919 passed the House in July, it has not yet been approved by the Senate. The lawmakers now want its stronger language restored in future legislation.

debate over digital dollar continues in Washington

The letter also points out that the current proposal still allows the Federal Reserve to study and research CBDCs. Critics worry that continued research could eventually lead to a rollout in the future.

A separate proposal known as the No CBDC Act (S 464), introduced by Senator Mike Lee earlier in 2025, also aimed to ban the Federal Reserve and Treasury from issuing a digital dollar. However, the bill has stalled in Congress.

The debate reflects broader divisions in Washington over digital currencies. While some policymakers see CBDCs as a way to modernize payments and compete with digital currencies from other countries, critics argue they could undermine privacy and financial freedom.

For now, the future of a US CBDC remains uncertain, but pressure from lawmakers suggests the issue will stay at the center of crypto and financial policy discussions in the years ahead.