Monetary Sovereignty Act: A Proposal to Abolish the Federal Reserve and Restore Economic Independence

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Section 1: Purpose

This bill aims to restore monetary sovereignty by repealing the Federal Reserve Act of 1913, dissolving the Federal Reserve System, and transferring monetary authority to Congress in alignment with the U.S. Constitution. The bill establishes a Treasury-based monetary system to ensure transparent, democratically controlled monetary policies that prioritize economic stability, middle- and working-class prosperity, and national economic sovereignty.

Section 2: Key Provisions

  1. Repeal of the Federal Reserve Act of 1913

    • The Federal Reserve Act of 1913 is hereby repealed in its entirety.
    • All components of the Federal Reserve System, including the Board of Governors, regional Federal Reserve Banks, and any related functions or authorities, shall be dissolved and cease operations within 12 months of the bill’s enactment.
    • All remaining assets and liabilities of the Federal Reserve System shall be transferred to the U.S. Department of the Treasury.

  2. Establishment of a Treasury-Based Monetary System

    • The U.S. Department of the Treasury shall assume full responsibility for issuing and managing the national currency, directly under Congressional oversight, to ensure transparency and accountability.
    • The Treasury shall implement a system for monetary policy that is publicly accessible, regularly reviewed by Congress, and prohibits any delegation of monetary authority to private or independent entities.
    • The new Treasury-based system shall issue currency, manage reserves, and set policies to align with the economic needs of the American people and the directives of Congress.

  3. Transition to Policies Benefiting Middle- and Working-Class Americans

    • The Treasury shall develop and implement monetary policies that reduce reliance on debt-driven economic growth and prioritize strengthening the economic foundation of middle- and working-class Americans.
    • This transition shall include policies to reduce income inequality, promote access to capital for small businesses, and prevent wealth concentration among financial elites.
    • The Treasury will submit a report to Congress every six months detailing the effects of monetary policies on wealth distribution, wage growth, and access to affordable credit, ensuring policies remain beneficial to the broader population.

  4. Implementation of an Asset-Backed or Stabilized Currency System

    • The Treasury shall evaluate and, within 18 months of enactment, establish a monetary system backed by tangible assets (such as gold, silver, or other commodities) or an alternative stable framework designed to preserve the dollar’s value.
    • The asset-backed or stable currency system shall prohibit artificial manipulation of interest rates, except by Congressional directive, and prevent policies favoring large financial institutions over the public interest.
    • This currency system shall be managed to promote long-term economic stability, reducing inflationary pressures while supporting sustainable economic growth.

Section 3: Oversight and Compliance

  1. Congressional Oversight and Reporting Requirements

    • A Congressional Oversight Committee on Monetary Policy shall be established to ensure compliance with this bill and monitor the Treasury’s monetary activities.
    • The Treasury must submit quarterly reports to the Oversight Committee detailing currency issuance, asset reserves, and economic impact assessments.

  2. Auditing and Transparency Measures

    • The Treasury’s monetary operations and asset-backed reserves shall be subject to annual audits by the Government Accountability Office (GAO), with full audit results made publicly available.
    • Any Treasury personnel found in violation of transparency or compliance requirements shall be subject to penalties, including potential removal and legal action.

Section 4: Implementation and Transition Timeline

  1. Repeal and Dissolution of the Federal Reserve System

    • The Federal Reserve Act repeal and system dissolution shall begin immediately upon passage of this bill, with a 12-month transition period to fully transfer responsibilities to the Treasury.

  2. Establishment of a Treasury-Based Monetary System

    • Within six months of enactment, the Treasury shall assume full monetary responsibilities and operational authority previously held by the Federal Reserve.

  3. Asset-Backed or Stabilized Currency System Transition

    • The Treasury shall implement the new asset-backed or stabilized currency system no later than 18 months after the bill’s enactment, with periodic updates provided to Congress.

Section 5: Effective Date

This bill shall take effect immediately upon passage, initiating the transition process as detailed in Section 4.

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