The Bill, Plain and Simple

Sen. Rick Scott, R-Fla., reintroduced the Chinese CBDC Prohibition Act on May 21, 2026, according to the Daily Signal. The bill would make it unlawful for U.S.-based money services businesses to process any transaction involving a central bank digital currency issued by the People's Republic of China — specifically the digital yuan.

Money services businesses covered include Venmo, Zelle, currency dealers, exchangers, and the U.S. Postal Service.

Who's Behind It

Scott first introduced this legislation in 2023 alongside Sens. Marsha Blackburn, R-Tenn., and Ted Cruz, R-Texas, according to Scott's official Senate website. Rep. Blaine Luetkemeyer, R-Mo., carried the House version that year as chairman of the Subcommittee on National Security, Illicit Finance, and International Financial Institutions.

This 2026 version was reintroduced with new co-sponsors. In October 2025, Scott also joined Sens. Tommy Tuberville, R-Ala., and Jim Justice, R-W.Va., on the separate No Alipay Act, targeting CCP-backed payment platform Alipay, according to Tuberville's Senate office. The legislative push aims to shut China out of the U.S. digital payments ecosystem across multiple fronts.

The Digital Yuan as a Tool

The digital yuan is a state-controlled digital currency where the Chinese Communist Party can monitor every transaction in real time, freeze funds, and restrict how and where money gets spent.

Luetkemeyer put it bluntly in 2023, according to Scott's Senate office: "The Chinese Communist Party uses the digital yuan to track in real time every transaction made with the currency. It is one of the many ways the CCP maintains its stranglehold on the Chinese people."

Blackburn has said: "Once Communist China is in your wallet, they are in your wallet forever."

China has already piloted the digital yuan domestically. The question is whether it ever gains a foothold in U.S. payment infrastructure.

The Preemptive Strike

No major U.S. money services business is currently processing digital yuan transactions. Scott's office acknowledged this directly, according to Florida Daily — federally licensed MSBs are not currently engaging in digital yuan transactions.

Scott's bill is a preemptive measure, not a response to existing activity. The bill's purpose is to close the door before the CCP gets its foot in it. Waiting until Alipay or the digital yuan has millions of American users before acting would repeat the mistake made with TikTok — years of delay while Chinese data collection scaled up.

The Legislative Record

This bill has been introduced, reintroduced, and introduced again over three years. It has received zero floor votes and died in the Senate Banking, Housing, and Urban Affairs Committee, according to Florida Daily's earlier reporting.

The legislation is not controversial. There is no coalition of Americans demanding the right to pay in digital yuan. There is no lobbying group openly defending the CCP's access to U.S. payment rails.

Congress struggles to pass anything outside of spending bills or debt ceiling extensions. The House and Senate graveyard is filled with bipartisan, common-sense legislation that never received a vote. Scott has called this a priority three times in three years while the Senate Banking Committee has sat on it.

The Alipay Angle

The No Alipay Act from October 2025 adds important context. Alipay, owned by Ant Group — which has deep ties to the CCP — collects sensitive personal and financial data from more than a billion users worldwide, according to Tuberville's Senate office.

Alipay is already operational in the U.S. in limited capacity, making it the more immediate threat. The digital yuan is more of a long-term concern. Scott is fighting both fronts, but the Alipay battle is arguably more urgent right now.

Outlook

The Chinese CBDC Prohibition Act is common-sense legislation. The digital yuan functions as a surveillance instrument. Keeping it out of U.S. payment infrastructure is the logical policy choice.

Scott has now introduced this bill three times. The sustained reintroductions underscore Congress's difficulty in passing straightforward legislation on this issue. The CCP does not need to win — it benefits from Washington's inaction.