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HB 5133

Financial institutions: banking practices; use of central bank digital currency; prohibit. Creates new act.

2025-2026 Regular Session Introduced by Steve Carra and 3 co-sponsors

HB 5133 bans Michigan state/local governments from accepting or requiring CBDC as legal tender and lets individuals sue for violations, with treble damages.

bill electronically reproduced 10/23/2025
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Bill Summary · HB 5133

Summary — HB 5133: "Central Bank Digital Currency Prevention Act"

Bill snapshot

  • Bill number: HB 5133
  • Short title: Central Bank Digital Currency Prevention Act
  • Introduced: March 13, 2025 (reintroduced/electronically reproduced Oct 23, 2025)
  • Sponsors/introductors: Rep. Steve Carra (introduced Oct 23, 2025); earlier listing includes Reps. Carra, DeSana, Fox, Pavlov
  • Status (from provided record): Read first time (Apr 7, 2025); referred to Public Health (Apr 7, 2025); reintroduced/read (Oct 23, 2025); referred to Committee on Finance (Oct 23, 2025)
  • Creates: a new act titled the “central bank digital currency prevention act”

Purpose / intent

To prohibit state and local governmental acceptance, requirement, or official support of central bank digital currency (CBDC) as legal tender in Michigan, and to provide a private civil remedy (including treble damages) for persons harmed by violations.

Key definitions (from bill text)

  • “Central bank digital currency” (CBDC): a digital currency, digital medium of exchange, or digital monetary unit of account issued by the U.S. Federal Reserve System, a federal or state agency, a foreign government, foreign central bank, or foreign reserve system that is made directly available to a consumer and processed/validated by those issuing entities.
  • “Legal tender”: money recognized by law as a valid means of payment and settlement of debt.

Major provisions

  • Prohibitions on governmental entities:
    • May not accept CBDC as legal tender in the state.
    • May not require CBDC as legal tender for services, taxes, licenses, permits, fees, information, or other amounts due to the governmental entity.
    • May not advocate for or support testing, adoption, or implementation of a CBDC by the U.S. government.
  • Remedies:
    • A person who suffers a loss from a violation may sue the governmental entity.
    • Courts must award a prevailing plaintiff three times (3×) the plaintiff’s actual damages.

Who/what is affected

  • Directly: state and local governmental entities and officials in Michigan (the bill uses the term “governmental entity”; the excerpt does not supply a statutory definition).
  • Indirectly: residents, businesses, vendors, taxpayers who interact with state/local governments for payments, permits, taxes, and fees.
  • Not addressed in the excerpt: private-sector acceptance or use of CBDC (prohibitions apply to governmental entities only); no criminal penalties specified—remedy is civil treble damages.

Procedural / timeline notes

  • Introduced March 13, 2025; procedural actions listed in April and October 2025. The bill text as reproduced is dated Oct 23, 2025.
  • The excerpt does not specify an effective date or administrative enforcement mechanisms beyond private civil suits.

Other considerations

  • The bill is state-level and targets government interaction with CBDC; it may raise questions about compatibility with federal actions or federal preemption depending on future federal policy or law. The text does not define “governmental entity” or set an administrative enforcement process beyond private lawsuits.

Compiled from official sources — confirm details with the bill’s official record.

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