U.S. House Financial Services Committee Approves Tom Emmer’s “CBDC Ban Act”

In Brief:

The bill prohibits the Federal Reserve from issuing CBDCs directly to individuals.

It aligns with President Trump’s January executive order protecting citizens from CBDC-related risks.

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The U.S. House Financial Services Committee has approved the “CBDC Ban Act,” a bill proposed by Congressman Tom Emmer. The legislation seeks to prevent the Federal Reserve from using central bank digital currencies (CBDCs) as tools for monetary policy and bars the Fed from offering financial services directly to individuals.

Emmer emphasized that the bill is intended to keep digital monetary policy in the hands of the American people—not unelected federal agencies. The move aligns with a January executive order signed by President Trump, aimed at blocking CBDC development due to concerns over financial surveillance and civil liberties.

Alongside the CBDC bill, the committee also advanced stablecoin regulation aimed at establishing a framework for dollar-backed stablecoins to enhance global competitiveness.

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