12 U.S.C. § 423 — Central bank digital currency

(a) Definitions
This section defines two terms. "Central bank digital currency" means a digital asset that is priced in U.S. dollars, counts as U.S. currency, is a direct debt of the Federal Reserve System, and is widely available to the public. "Digital asset" has the same meaning given to it in section 5901 of this title.

(b) Prohibition
Except as allowed by subsection (c), the Federal Reserve Board of Governors and Federal Reserve banks cannot issue or create a central bank digital currency. They also cannot issue or create any digital asset that is substantially similar to one — whether they do it directly, or indirectly through a bank or other intermediary.

(c) Exception
The ban in subsection (b) does not stop a dollar-denominated currency that is open, permissionless, and private. To qualify, it must fully preserve the same privacy protections that U.S. coins and paper money have.

(d) Sunset
This section stops being effective on December 31, 2030.

(e) Rule of construction
Nothing in this section gives the Federal Reserve Board permission to issue a central bank digital currency, or a substantially similar digital asset, on its own. Only an Act of Congress can authorize that.