S416-118

Reported

To designate the Russian-based mercenary Wagner Group as a foreign terrorist organization, and for other purposes.

118th Congress Introduced Feb 14, 2023

Analysis under review: This bill has generated analysis that may be too generic or incomplete. Clause-level evidence remains available below.

Summary

What This Bill Does

This bill blocks the Federal Reserve and Treasury Department from creating a U.S. digital dollar (central bank digital currency or CBDC) unless Congress specifically authorizes it. It amends both the Federal Reserve Act and the U.S. Code to require explicit Congressional approval before any government-issued digital currency can be created.

Who Benefits and How

Privacy advocates and cryptocurrency/fintech companies benefit from this bill. By preventing a government-controlled digital dollar, private cryptocurrency exchanges, stablecoin issuers, and digital payment platforms face less competition from a potential government alternative. Financial privacy advocates gain assurance that the government cannot easily track all citizen transactions through a centralized digital currency system.

Who Bears the Burden and How

The Federal Reserve loses the flexibility to develop and deploy digital currency innovations that other central banks worldwide are pursuing. Proponents of financial modernization and those who see CBDC as a tool for faster, cheaper payments face delays in potential benefits. The Treasury Department is restricted from directing monetary innovation in this area.

Key Provisions

  • Explicitly prohibits the Federal Reserve from issuing a CBDC without Congressional authorization
  • Prohibits the Treasury Secretary from directing the Fed to issue a CBDC
  • Defines CBDC as digital money denominated in the national unit of account that is a direct liability of the Federal Reserve

Evidence Chain:

This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers.

At a Glance

What This Bill Does

Prohibits the Federal Reserve and Treasury from issuing or directing the issuance of a central bank digital currency (CBDC) without explicit Congressional authorization

Key Policy Areas

Finance, Monetary Policy, Digital Currency, Privacy

Primary Purpose

Prohibits the Federal Reserve and Treasury from issuing or directing the issuance of a central bank digital currency (CBDC) without explicit Congressional authorization

Policy Domains

Finance Monetary Policy Digital Currency Privacy

Section 5 - Central Bank Digital Currency

Identified Gains
Contextual inference, no direct clause citation
  • Cryptocurrency exchanges
  • Stablecoin issuers
  • Digital payment platforms
  • Privacy advocates
  • Traditional banks
Model: N/A | Version: bill_summary_v2 | Source: rs

Contextual inference, no direct clause citation

Identified Costs
Contextual inference, no direct clause citation
  • Federal Reserve
  • Treasury Department
  • CBDC proponents
Model: N/A | Version: bill_summary_v2 | Source: rs

Contextual inference, no direct clause citation

Legislative Progress

Reported
Introduced Committee Passed
Jul 25, 2023

Reported by Mr. Menendez, with an amendment

Feb 14, 2023

Mr. Wicker (for himself, Mr. Cardin, Mrs. Shaheen, Mr. Tillis, …

Feb 14, 2023

Mr. Wicker (for himself, Mr. Cardin, Mrs. Shaheen, Mr. Tillis, …

Stakeholder Effects

cui bono?

How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.

Military
8 mentions across 8 clauses
-8 negative

High-value Wagner Group individuals, Russian mercenary groups (Wagner, PMC Patriot, etc.), Wagner Group and affiliated entities

Government
8 mentions across 6 clauses
+2 positive ?6 uncertain

Foreign service officers (hard-to-staff posts), US State Department, US State Department - Africa bureaus

Foreign Entities
3 mentions across 3 clauses
+2 positive -1 negative

Allied foreign government intelligence services, Allied foreign governments, Countries providing mining concessions to Wagner Group

Positive-direction: Allied foreign government intelligence services, Allied foreign governments

Negative-direction: Countries providing mining concessions to Wagner Group

Financial Services
2 mentions across 2 clauses
-1 negative ?1 uncertain

Financial networks supporting Russian mercenaries, IMF and Export-Import Bank

Nonprofits
2 mentions across 1 clause
+2 positive

Humanitarian NGOs operating in conflict zones, Peacebuilding and conflict resolution organizations

Oil & Gas
1 mention across 1 clause
-1 negative

Wagner Group mining operations

Media & Entertainment
1 mention across 1 clause
-1 negative

Wagner Group disinformation networks

Other Services
1 mention across 1 clause
-1 negative

Entities providing material support to Wagner Group

11/13
sections analyzed
Full impact breakdown

Bill Structure & Actor Mappings

Who is "The Secretary" in each section?

Domains
Finance Monetary Policy
Actor Mappings
"the_board"
→ Board of Governors of the Federal Reserve System
"the_secretary"
→ Secretary of the Treasury

Key Definitions

Terms defined in this bill

1 term
"central bank digital currency" §16A(b)

A form of digital money or monetary value, denominated in the national unit of account, that is a direct liability of the Federal Reserve System

We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.

Learn more about our methodology