US Lawmakers Demand Permanent Ban on Central Bank Digital Currency
A coalition of 29 US lawmakers, led by Congressman Michael Cloud, has issued a stern warning that any temporary prohibition on a US central bank digital currency (CBDC) is insufficient, arguing that a ban must be permanent to protect American financial freedom.
The group sent a letter on Friday to House Speaker Mike Johnson and Senate Majority Leader John Thune, declaring that creating a CBDC would be “inherently anti-American.” They contend that such a currency would enable “unconstitutional financial surveillance” and grant the Federal Reserve unprecedented, unchecked power over citizens’ finances, directly threatening civil liberties.
Concerns Over “Watered-Down” Temporary Ban
The lawmakers’ urgent appeal targets a specific provision within the sprawling “21st Century ROAD to Housing Act” (HR 6644), a 300-page bill released by the Senate Committee on Banking, Housing, and Urban Affairs. This legislation proposes an amendment to the Federal Reserve Act that would only bar the central bank from issuing a retail CBDC until 2031.
Cloud and his colleagues argue this sunset clause is a dangerous compromise. “A prohibition of a Central Bank Digital Currency must be permanent,” the letter states. They assert the amendment contains a “watered-down version” of the more stringent “Anti-CBDC Surveillance State Act” (HR 1919), originally introduced by Congressman Tom Emmer in June 2025. While HR 1919 passed the House on July 17, it has not yet been approved by the Senate.
Critically, the lawmakers note the amended bill in HR 6644 does not prevent the Federal Reserve from continuing its research and experimentation into a CBDC. They are demanding the restoration of HR 1919’s “strong language” to enact a complete and indefinite prohibition.
Previous Legislative Efforts and the Path Forward
This is not the first attempt to legislatively block a US CBDC. In February 2025, Senator Mike Lee introduced the standalone “No CBDC Act” (S 464), which sought to permanently prohibit the Federal Reserve and the Treasury from issuing a CBDC. However, that bill stalled in Congress without receiving a full vote.
The current letter frames the debate as urgent, stating a CBDC is “a looming issue we must put an end to before it is too late.” The signatories are pushing back against what they view as a strategy to delay a permanent ban through temporary measures, urging congressional leadership to adopt an unyielding statutory barrier.
Source: Ralph Norman
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