A coalition of 29 US lawmakers, led by Congressman Michael Cloud, is calling for a permanent ban on the creation of a Central Bank Digital Currency (CBDC) in the United States, arguing that the proposed temporary ban until 2031 is insufficient to protect American citizens’ financial privacy and civil liberties.
“We write to you to express the dire need to prohibit a Central Bank Digital Currency from ever happening in the United States,” Cloud wrote in a letter addressed to House Speaker Mike Johnson and Senate Majority Leader John Thune. The letter, signed by 28 other members of Congress, underscores the urgency of preventing the Federal Reserve from gaining unprecedented control over Americans’ financial lives.
The Current Legislation and Its Shortcomings
The push for a permanent ban comes in response to a proposed amendment to the Federal Reserve Act, part of the 300-page ’21st Century ROAD to Housing Act’ (HR 6644), which would prohibit the US central bank from issuing a CBDC until 2031. However, Cloud and his colleagues argue that this temporary measure does not go far enough to protect Americans from what they view as unconstitutional financial surveillance.
“A prohibition of a Central Bank Digital Currency must be permanent. A CBDC is inherently anti-American and a looming issue we must put an end to before it is too late,” the letter states.
The lawmakers are particularly concerned about the amendment’s failure to prevent the Federal Reserve from studying a CBDC, a point they emphasize in their letter. They insist that the strong language of the ‘Anti-CBDC Surveillance State Act’ (HR 1919), introduced by Congressman Tom Emmer in June 2025, must be restored to ensure a comprehensive ban.
The Broader Context and Implications
The debate over CBDCs has been intensifying as countries around the world explore the potential benefits and risks of digital currencies. While proponents argue that CBDCs can enhance financial inclusion and efficiency, critics, like the US lawmakers, warn of the dangers of centralized control and surveillance. The letter from Cloud and his colleagues highlights the growing skepticism within the US government about the Federal Reserve’s role in digital currency development.
The ‘No CBDC Act’ (S 464), introduced by Senator Mike Lee in February 2025, also aims to prohibit the Federal Reserve or Treasury from issuing a CBDC, but it has yet to gain traction in Congress. The lack of progress on this bill underscores the ongoing debate and the need for more decisive action, according to the lawmakers.
Looking Forward
As the debate continues, the US government will need to strike a balance between innovation and protection of individual liberties. The push for a permanent ban on CBDCs reflects a deep-seated concern about the potential for overreach by the Federal Reserve and the erosion of financial privacy. Whether the current momentum will translate into concrete legislative action remains to be seen, but the issue is likely to remain a focal point in the ongoing discussions about the future of digital finance in the United States.
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