New 'Power of the Mint Act' Blocks Federal Reserve from Launching a Digital Dollar Without Explicit Congressional OK

The new “Power of the Mint Act” is short, but it packs a punch, focusing entirely on one thing: who gets to decide if the U.S. launches a Central Bank Digital Currency (CBDC). If you’ve heard buzz about a “digital dollar,” this bill essentially slams the brakes on its creation unless Congress—the people you actually vote for—signs off first.

The Constitution vs. The Code

This bill starts by reminding everyone that the U.S. Constitution gives Congress the sole power to “coin Money [and] regulate the Value thereof.” (SEC. 2). They are basically saying, “We are the boss of the currency, not the bankers.” The bill then moves to put strict limits on the two major players in U.S. monetary policy: the Federal Reserve and the Treasury Department.

No Digital Dollar Without a Congressional Green Light

For the average person, the key takeaway is that the Federal Reserve is now explicitly prohibited from issuing a CBDC. The bill amends the Federal Reserve Act to state that the Fed’s Board of Governors cannot issue a central bank digital currency unless Congress passes a specific law authorizing it (SEC. 3). They define a CBDC here as a digital form of the dollar that is a direct liability of the Federal Reserve—meaning it’s a direct promise from the central bank, like cash, but digital.

This is a big deal because it removes the possibility of the Fed or the Treasury making a unilateral decision that could fundamentally change how money works in the U.S. It means the creation of a digital dollar—and all the policy debates around privacy, surveillance, and control that come with it—must first go through the messy, public process of Congress.

The Treasury Can’t Force the Fed’s Hand

The bill also makes sure the Treasury Secretary can’t just tell the Federal Reserve to go ahead and launch a CBDC if Congress hasn't given the O.K. (SEC. 3). This prevents the executive branch from trying to bypass the legislative branch through administrative pressure. In short, the bill creates a wall of procedure: if the U.S. gets a digital dollar, it will be because Congress voted for it, and only then.

What This Means For Your Wallet

For the moment, this bill changes nothing about how you pay for your coffee or get your paycheck. It is a procedural bill, not a policy one. However, its real-world impact is about control and oversight. If you are someone who worries about government overreach or the idea of a central authority having too much insight into your transactions, this bill is designed to ensure that any move toward a digital currency is debated publicly and approved democratically.

It essentially tells the Federal Reserve, which often operates independently of political pressures, that when it comes to creating a new form of money, they have to wait their turn. It’s a win for those who believe major financial shifts should be decided by elected officials, even if it means slowing down potential innovation in digital currency.