I 
112TH CONGRESS 
1ST SESSION H. R. 1098 
To repeal the legal tender laws, to prohibit taxation on certain coins and 
bullion, and to repeal superfluous sections related to coinage. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 15, 2011 
Mr. PAUL introduced the following bill; which was referred to the Committee 
on Financial Services, and in addition to the Committees on Ways and 
Means and the Judiciary, for a period to be subsequently determined by 
the Speaker, in each case for consideration of such provisions as fall with-
in the jurisdiction of the committee concerned 
A BILL 
To repeal the legal tender laws, to prohibit taxation on 
certain coins and bullion, and to repeal superfluous sec-
tions related to coinage. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Free Competition in 
Currency Act of 2011’’. 
SEC. 2. REPEAL OF LEGAL TENDER LAWS. 
(a) IN GENERAL.—Section 5103 of title 31, United 
States Code (relating to legal tender), is hereby repealed. 
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(b) CLERICAL AMENDMENT.—The table of sections 
for subchapter I of chapter 51 of title 31, United States 
Code, is amended by striking the item relating to section 
5103 and inserting the following new item: 
‘‘5103. [Repealed].’’. 
SEC. 3. NO TAX ON CERTAIN COINS AND BULLION. 
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law— 
(1) no tax may be imposed on (or with respect 
to the sale, exchange, or other disposition of) any 
coin, medal, token, or gold, silver, platinum, palla-
dium, or rhodium bullion, whether issued by a State, 
the United States, a foreign government, or any 
other person; and 
(2) no State may assess any tax or fee on any 
currency, or any other monetary instrument, which 
is used in the transaction of interstate commerce or 
commerce with a foreign country, and which is sub-
ject to the enjoyment of legal tender status under 
article I, section 10 of the United States Constitu-
tion. 
(b) EFFECTIVE DATE.—This section shall take effect 
on December 31, 2011, but shall not apply to taxes or 
fees imposed before such date. 
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SEC. 4. REPEAL OF SUPERFLUOUS SECTIONS. 
(a) IN GENERAL.—Title 18, United States Code, is 
amended by striking sections 486 (relating to uttering 
coins of gold, silver, or other metal) and 489 (making or 
possessing likeness of coins). 
(b) CONFORMING AMENDMENT TO TABLE OF SEC-
TIONS.—The table of sections at the beginning of chapter 
25 of title 18, United States Code, is amended by striking 
the items relating to the sections stricken by subsection 
(a). 
(c) SPECIAL RULE CONCERNING RETROACTIVE EF-
FECT.—Any prosecution under the sections stricken by 
subsection (a) shall abate upon the taking effect of this 
section. Any previous conviction under those sections shall 
be null and void. 
Æ 
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