Bill Summary
The "Chinese Communist Party SDR Exchange Prohibition Act of 2025" is a piece of legislation aimed at restricting the U.S. Secretary of the Treasury from engaging in transactions involving Special Drawing Rights (SDRs) issued by the International Monetary Fund (IMF) that are held by the Chinese Communist Party (CCP).
Key components of the legislation include:
1. **Prohibition on Transactions**: The Secretary of the Treasury is explicitly prohibited from conducting any exchange of SDRs with the CCP.
2. **Advocacy for International Cooperation**: The Secretary is tasked with advocating for other IMF member countries to also prohibit exchanges of SDRs held by the CCP and to oppose any allocations of SDRs to the CCP within the IMF.
3. **Presidential Waiver**: The President has the authority to waive this prohibition if deemed necessary for U.S. national interests, but must notify Congress with justification.
4. **Termination Clause**: The prohibition will automatically expire five years after enactment or sooner if the President determines and reports to Congress that ending the prohibition is in the national interest of the U.S.
This legislation reflects concerns regarding the CCP's access to international financial resources and aims to limit its influence within the global economic system.
Possible Impacts
Here are three examples of how the "Chinese Communist Party SDR Exchange Prohibition Act of 2025" could affect people:
1. **Impact on International Trade and Investment**: The prohibition of transactions involving Special Drawing Rights (SDRs) held by the Chinese Communist Party could lead to increased tensions in international trade. Businesses and investors in the U.S. and other countries might face uncertainty regarding their dealings with Chinese entities. This could result in decreased foreign investment or disruptions in supply chains, potentially affecting jobs and economic stability in sectors dependent on trade with China.
2. **Effects on Global Monetary Policy**: By advocating for other IMF member countries to prohibit similar transactions, the Act could shift the dynamics of global monetary policy. If other nations follow suit, it may lead to a reduction in the liquidity and utility of SDRs for the Chinese government. This could impact global markets and economies, as China plays a significant role in international finance, ultimately affecting individuals worldwide through fluctuations in currency values and economic growth prospects.
3. **Public Sentiment and Political Polarization**: The Act may deepen public sentiment against China and exacerbate political polarization in the U.S. Those who view the legislation as a necessary step for national security may support it, while others might see it as an escalation that could lead to economic fallout or conflict. This could influence public opinion and political discourse, impacting voter behavior and shaping future legislation related to foreign relations and trade.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 3036 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
1st Session
S. 3036
To prohibit the Secretary of the Treasury from engaging in transactions
involving the exchange of Special Drawing Rights issued by the
International Monetary Fund that are held by the Chinese Communist
Party.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
October 23, 2025
Mr. Scott of Florida introduced the following bill; which was read
twice and referred to the Committee on Foreign Relations
_______________________________________________________________________
A BILL
To prohibit the Secretary of the Treasury from engaging in transactions
involving the exchange of Special Drawing Rights issued by the
International Monetary Fund that are held by the Chinese Communist
Party.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Chinese Communist Party SDR Exchange
Prohibition Act of 2025''.
SEC. 2. PROHIBITION ON EXCHANGE OF SPECIAL DRAWING RIGHTS HELD BY
CHINESE COMMUNIST PARTY.
(a) In General.--The Secretary of the Treasury may not engage in
any transaction involving the exchange of Special Drawing Rights issued
by the International Monetary Fund and held by the Chinese Communist
Party.
(b) Advocacy.--The Secretary shall--
(1) vigorously advocate that the government of each member
country of the International Monetary Fund, to the extent that
the member country issues a freely usable currency, prohibit
transactions involving the exchange of Special Drawing Rights
held by the Chinese Communist Party; and
(2) direct the United States Executive Director of the
International Monetary Fund to use the voice and vote of the
United States to oppose any allocation of Special Drawing
Rights to the Chinese Communist Party.
(c) Waiver.--The President may waive the application of this
section if the President--
(1) determines that a waiver is in the national interest of
the United States; and
(2) submits to Congress a notice of and justification for
such waiver.
(d) Termination.--This section shall terminate on the earlier of--
(1) the date that is 5 years after the date of the
enactment of this Act; and
(2) the date on which the President determines and reports
to Congress that termination of this section is in the national
interest of the United States.
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