Power of the Mint Act

Bill Number

H.R. 4438

Origin Chamber

House

Congress

119th Congress, Session 1

Status

Introduced

Latest Action

2025-07-16: Referred to the House Committee on Financial Services.

Last Updated

2025-07-24T02:23:24Z

AI-Generated Summary

Purpose

The "Power of the Mint Act" (H.R. 4438) aims to prevent the Board of Governors of the Federal Reserve and the Secretary of the Treasury from issuing or directing the issuance of a central bank digital currency (CBDC) without explicit authorization from Congress. A CBDC is defined as a digital form of money, measured in the U.S. dollar, that represents a direct obligation (like a debt) of the Federal Reserve or central bank.

Key Provisions

• Congressional Findings: The bill states that under Article I, Section 8 of the U.S. Constitution, only Congress has the power to create money and set its value. It also notes that the Federal Reserve Act of 1913 requires Federal Reserve banks to serve as financial agents for the U.S. government only when directed by the Treasury Secretary.
• Prohibition on Federal Reserve: Amends the Federal Reserve Act by adding a new Section 16A, which bans the Federal Reserve Board from issuing a CBDC without Congressional approval. The definition of CBDC is included here as digital money that is a direct liability of the Federal Reserve.
• Prohibition on Treasury: Amends Title 31 of the U.S. Code by adding a new Section 317, which prevents the Treasury Secretary from ordering the Federal Reserve to issue a CBDC without Congressional authorization. It uses a similar definition of CBDC, adapted to refer to the central bank.

Significant Changes to Existing Law

• Inserts new prohibitive sections into the Federal Reserve Act (12 U.S.C. 221 et seq.) and U.S. Code (Title 31, Chapter 3), which previously did not explicitly address CBDCs.
• Shifts authority over digital currencies from executive branch agencies (Federal Reserve and Treasury) to Congress, requiring legislative approval for any future CBDC issuance. No other aspects of existing monetary policy or Federal Reserve operations are altered.

Potential Impacts

• Government Agencies: Restricts the Federal Reserve and Treasury's ability to innovate in digital finance independently, potentially slowing U.S. adoption of CBDCs compared to other countries. This could require agencies to seek Congressional input for related research or pilots.
• Citizens: May protect individual privacy and financial autonomy by blocking government-issued digital dollars that could enable greater transaction tracking. However, it might delay benefits like faster payments or reduced reliance on private banks.
• International Relations: Could position the U.S. as more cautious in global digital currency competitions (e.g., with China's digital yuan), affecting cross-border trade, sanctions enforcement, or alliances in financial technology standards.

Main Stakeholders Affected

• Congress: Gains explicit control over CBDC decisions, reinforcing its constitutional role.
• Federal Reserve and Treasury Department: Face new limitations on their monetary policy tools, potentially requiring budget or operational adjustments.
• Financial Institutions and Businesses: Banks and payment providers may see less immediate competition from a government digital currency, but could face uncertainty in long-term digital finance planning.
• Citizens and Consumers: Everyday users of money and digital payments, who might experience indirect effects on banking innovation or economic stability.

Notable Legal, Constitutional, or Political Implications

• Legal/Constitutional: Upholds Congress's exclusive power to "coin money" under the Constitution, potentially setting a precedent for limiting executive actions in emerging financial technologies without legislative oversight.
• Political: Sparks debate on balancing innovation with concerns over government surveillance or control of money. If passed, it could influence broader discussions on cryptocurrency regulation and U.S. competitiveness in fintech, without favoring any partisan viewpoint.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Auchincloss, Jake [D-MA-4]

Recent Actions

• 2025-07-16: Referred to the House Committee on Financial Services.
• 2025-07-16: Introduced in House
• 2025-07-16: Introduced in House

Bill Versions

• Power of the Mint Act — issued 2025-07-16 — PDF (3 pages)