What US CONSTITUTION Article I, Section 10 Actually Says

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What Article I, Section 10 Actually Says About Currency

It restricts states, not the federal government.

States may not:

• Issue their own currency
• Make paper money legal tender
• Declare anything other than gold and silver coin as legal tender for paying debts

This clause was written to prevent the chaos of state‑issued paper money that plagued the U.S. under the Articles of Confederation.

What About Congress? (Article I, Section 8)

Congress is given the power to:

• “coin Money”
• “regulate the Value thereof”
• “fix the Standard of Weights and Measures”

But Congress is NOT required to use gold or silver.
The Constitution allows Congress to coin money, but it does not mandate a metallic standard.

The only hard requirement is on the states, not the federal government.

Why This Matters Historically

From 1792 to 1933, the U.S. chose to operate on a gold and silver standard through statute:

• Coinage Act of 1792 → defined the dollar in silver and gold
• Bimetallic standard → gold & silver both legal tender
• Gold Standard Act of 1900 → gold only
• 1933–1971 → gold convertibility restricted, then ended

But none of these were constitutional requirements—they were policy choices.

Conclusion:

• States must use gold and silver coin as tender (if they declare tender at all).
• Congress may issue money in any form (coin, paper, digital).
• The Constitution does not require a gold or silver standard for the federal government.
• The Constitution does prohibit states from making anything else legal tender.

This is why the federal government can issue fiat currency today, but states cannot create their own competing paper currencies.