CBDC Anti-Surveillance State Act

This bill, known as the CBDC Anti-Surveillance State Act, aims to make changes to the Federal Reserve Act. It specifically focuses on prohibiting Federal Reserve banks from providing certain products or services directly to individuals, as well as banning the use of central bank digital currency (CBDC) for monetary policy.

Prohibition on Federal Reserve Banks

The bill adds new clauses to the Federal Reserve Act, stating that Federal Reserve banks cannot offer products or services directly to individuals. They are also prohibited from keeping individual accounts or issuing central bank digital currency or any similar digital asset to individuals.

Prohibition on Indirect Issuance of CBDC

In addition, the bill prohibits Federal Reserve banks from indirectly issuing central bank digital currency through financial institutions or intermediaries. However, it does not prevent the use of dollar-denominated currency that is open, permissionless, and private, as long as it preserves the privacy protections of physical currency.

No Use of CBDC for Monetary Policy

The bill further states that the Board of Governors of the Federal Reserve System and the Federal Open Market Committee cannot use central bank digital currency or any similar digital asset for implementing monetary policy.

Central Bank Digital Currency

The bill adds a new section to the Federal Reserve Act, which specifies that the Federal Reserve System cannot design, build, develop, establish, or issue central bank digital currency without Congressional authorization. It defines CBDC as a form of digital money denominated in the national unit of account and directly linked to the liability of the Federal Reserve System.

A similar provision is also added to the United States Code, which states that the Secretary of the Treasury cannot direct the Federal Reserve System to create or issue central bank digital currency.

Protection for Open, Permissionless, and Private Currency

This bill and its amendments do not apply to any dollar-denominated currency that is open, permissionless, and private, as long as it maintains the privacy protections of physical currency.

Sense of Congress

The bill expresses the sense of Congress that the Board of Governors of the Federal Reserve System should not be allowed to develop, create, or implement central bank digital currency or use it for implementing monetary policy.

Prohibition on CBDC Testing

Lastly, the bill prohibits the Federal Reserve System and its banks from establishing, carrying out, or approving any program aimed at testing the feasibility of issuing central bank digital currency, unless authorized by a subsequent Act of Congress.

Passed the House of Representatives on May 23, 2024.

Rep. Burgess Owens

Stats

Sponsored Legislation