Power of the Mint Act

The Power of the Mint Act would prohibit the Federal Reserve and the Secretary of the Treasury from issuing a central bank digital currency (CBDC) unless Congress specifically authorizes it. The bill adds new prohibitions and definitions to federal law: it would insert a new Section 16A into the Federal Reserve Act stating that the Board of Governors may not issue a CBDC without Congressional authorization, and a new Section 317 into Title 31 of the U.S. Code stating that the Secretary of the Treasury may not direct the Fed to issue a CBDC without Congressional authorization. In both cases, a CBDC is defined as a digital money or monetary value, denominated in the national unit of account, that is a direct liability of the central bank. The bill also cites constitutional authority and the Fed’s current role as a depository and fiscal agent as part of its findings.