Chinese CBDC Prohibition Act of 2026
- Bill Number
- S. 4601
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 2
- Policy Area
- Finance and Financial Sector
- Status
- Introduced
- Latest Action
- 2026-05-20: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- Last Updated
- 2026-06-05T18:11:41Z
AI-Generated Summary
Chinese CBDC Prohibition Act of 2026 (S. 4601)
Purpose
This legislation aims to prevent U.S. money services businesses from participating in transactions that involve a central bank digital currency issued by the People's Republic of China.
Key Provisions
- New Prohibition: Adds Section 5337 to Subchapter II of Chapter 53 of Title 31, United States Code, which explicitly bars money services businesses from engaging, directly or indirectly, in any transaction involving a central bank digital currency from the People's Republic of China.
- Definition Reference: Defines "money services business" by referencing the existing definition in Section 1010.100 of Title 31 of the Code of Federal Regulations.
- Technical Update: Amends the table of sections for Subchapter II of Chapter 53 of Title 31 to include the new Section 5337.
Significant Changes to Existing Law
The bill introduces a targeted restriction into the existing framework governing monetary transactions under Title 31, U.S. Code. It creates a new standalone prohibition without altering prior reporting or recordkeeping requirements in the subchapter.
Potential Impacts
- On Government Agencies: Federal regulators responsible for overseeing money services businesses (such as those enforcing financial transaction rules) would gain authority to monitor and enforce compliance with this new restriction.
- On Citizens and Businesses: U.S. money services businesses could face limits on handling certain international payments or exchanges tied to China's digital currency, potentially affecting users who rely on these services for cross-border activities.
- On International Relations: The measure may restrict financial channels involving China's central bank digital currency, which could influence U.S.-China economic interactions without directly affecting other foreign currencies.
Main Stakeholders Affected
- Money services businesses operating in the United States.
- Individuals and entities that use these businesses for transactions potentially linked to China's digital currency.
- Federal agencies involved in financial regulation and enforcement under Title 31.
Notable Legal, Constitutional, or Political Implications
The legislation operates within Congress's authority to regulate financial transactions and does not introduce new reporting mandates or penalties beyond the stated prohibition. It focuses solely on one specific foreign digital currency, leaving other digital assets and foreign currencies unaffected by this change.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (1)
Recent Actions
- 2026-05-20: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- 2026-05-20: Introduced in Senate
Bill Versions
- Chinese CBDC Prohibition Act of 2026 — issued 2026-05-20 — PDF (2 pages)