; redemption Section 16 of the Federal Reserve Act ( 12 U.S.C. 411 ) is amended by striking the first two sentences and inserting: Federal reserve notes, to be issued at the discretion of the Board of Governors of the Federal Reserve System for the purpose of making advances to Federal reserve banks through the Federal reserve agents as hereinafter set forth and for no other purpose, are authorized. Notwithstanding any other provision of law, the Board of Governors of the Federal Reserve System is authorized to issue digital versions of Federal reserve notes in addition to current physical Federal reserve notes. Further, the Board of Governors of the Federal Reserve System, after consultation with the Secretary of the Treasury, is authorized to use distributed ledger technology for the creation, distribution and recordation of all transactions involving digital Federal reserve notes. The said notes shall be obligations of the United States and shall be considered legal tender and shall be receivable by all national and member banks and Federal reserve banks and for all taxes, customs, and other public dues. They shall be redeemed in lawful money on demand at the Treasury Department of the United States, in the city of Washington, District of Columbia, or at any Federal Reserve bank. . 302. Digital asset legal tender status Section 5103 of title 31, United States Code, is amended to read as follows: 5103. Legal tender United States coins and currency (including Federal reserve notes and circulating notes of Federal reserve banks and national banks) are legal tender for all debts, public charges, taxes, and dues. Foreign fiat currencies, digital assets, digital asset securities and foreign gold and silver coins are not legal tender. . B Regulation of Digital Asset Fiat-Based Stablecoins 311. Department of Treasury regulation of digital asset fiat-based stablecoins Subchapter I of chapter 51 of subtitle IV of title 31, United States Code is amended by adding at the end the following: 5104. Department of Treasury