If enacted, HB3402 would amend the Federal Reserve Act and several sections of the U.S. Code to establish that the Federal Reserve and the Treasury cannot issue a CBDC without explicit authorization from Congress. This means that the development and introduction of a national digital currency would require legislative oversight, potentially delaying any plans for innovation in the digital currency space that could be initiated by the Federal Reserve.
Summary
House Bill 3402, known as the 'Power of the Mint Act,' seeks to limit the authority of the Board of Governors of the Federal Reserve and the Secretary of the Treasury by prohibiting the issuance of a central bank digital currency (CBDC) without Congressional approval. This bill highlights the ongoing debate about the regulation of digital currencies in the U.S. financial system, pushing for a more controlled approach to monetary policy and digital finance.
Contention
There are notable points of contention regarding this bill. Proponents argue that it protects the legislative authority over monetary policy, ensuring that Congress retains control over the creation of money and financial regulations. However, opponents may view this as a hindrance to the advancement of financial technology and innovation, as they believe that digital currencies could modernize the financial system and improve transaction efficiency. The discussions around this legislation reflect a broader debate about the future of money in a digital age, highlighting the urgency of establishing a clear regulatory framework.
Federal Infrastructure Bank Act of 2023 This bill establishes the Federal Infrastructure Bank and the Federal Infrastructure Bank Holding Company (FIBHC). The bank shall be a wholly owned subsidiary of the FIBHC. The bank must provide equity investments, direct loans, and loan guarantees for the planning, predevelopment, design, construction, operation or maintenance of infrastructure projects in the United States with sufficient revenue sources and guarantees to support the interest and principal payments to the bank. At least 10% of the loans, equity investments, and loan guarantees must be for infrastructure projects in rural areas. The Board of Governors of the Federal Reserve System shall have oversight and supervisory authority over the FIBHC and the bank. The bank must establish an Infrastructure Guarantee Fund to cover loans and loan guarantees in the event of nonpayment by loan recipients. The bill provides for a taxpayer credit in an amount equal to 10% of the amount such taxpayer paid to the FIBHC for an equity investment at its original issue.