Anti-CBDC Surveillance State Act

Anti-CBDC Surveillance State Act 

This bill prohibits a Federal Reserve bank from offering products or services directly to an individual, maintaining an account on behalf of an individual, or issuing a central bank digital currency (i.e., a digital dollar). Further, the Board of Governors of the Federal Reserve System is prohibited from using a central bank digital currency to implement monetary policy or from testing, studying, creating, or implementing a central bank digital currency, with exceptions as provided by the bill.

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 1124 Introduced in Senate (IS)]

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119th CONGRESS
  1st Session
                                S. 1124

To amend the Federal Reserve Act to prohibit the Federal reserve banks 
 from offering certain products or services directly to an individual, 
   to prohibit the use of central bank digital currency for monetary 
                    policy, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 25, 2025

Mr. Cruz (for himself, Mr. Budd, Mr. Cramer, and Mr. Tillis) introduced 
the following bill; which was read twice and referred to the Committee 
                 on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
To amend the Federal Reserve Act to prohibit the Federal reserve banks 
 from offering certain products or services directly to an individual, 
   to prohibit the use of central bank digital currency for monetary 
                    policy, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Anti-CBDC Surveillance State Act''.

SEC. 2. PROHIBITION ON FEDERAL RESERVE BANKS RELATING TO CERTAIN 
              PRODUCTS OR SERVICES FOR INDIVIDUALS AND PROHIBITION ON 
              DIRECTLY ISSUING A CENTRAL BANK DIGITAL CURRENCY.

    Section 16 of the Federal Reserve Act (12 U.S.C. 411 et seq.) is 
amended by adding at the end the following:
    ``A Federal reserve bank may not--
            ``(1) offer products or services directly to an individual;
            ``(2) maintain an account on behalf of an individual; or
            ``(3) issue a central bank digital currency, as defined in 
        section 10(11)(D), or any digital asset that is substantially 
        similar under any other name or label.''.

SEC. 3. PROHIBITION ON FEDERAL RESERVE BANKS INDIRECTLY ISSUING A 
              CENTRAL BANK DIGITAL CURRENCY.

    Section 16 of the Federal Reserve Act (12 U.S.C. 411 et seq.), as 
amended by section 2, is further amended by adding at the end the 
following:
    ``A Federal reserve bank may not offer a central bank digital 
currency, as defined in section 10(11)(D), or any digital asset that is 
substantially similar under any other name or label, indirectly to an 
individual through a financial institution or other intermediary.''.

SEC. 4. PROHIBITION WITH RESPECT TO CENTRAL BANK DIGITAL CURRENCY.

    Section 10 of the Federal Reserve Act (12 U.S.C. 241 et seq.) is 
amended by inserting before paragraph (12) the following:
            ``(11) Prohibition with respect to central bank digital 
        currency.--
                    ``(A) In general.--The Board of Governors of the 
                Federal Reserve System may not test, study, develop, 
                create, or implement a central bank digital currency, 
                or any digital asset that is substantially similar 
                under any other name or label.
                    ``(B) Monetary policy.--The Board of Governors of 
                the Federal Reserve System and the Federal Open Market 
                Committee may not use a central bank digital currency 
                to implement monetary policy, or any digital asset that 
                is substantially similar under any other name or label.
                    ``(C) Exception.--Subparagraph (A) and the 
                eighteenth and nineteenth undesignated paragraphs of 
                section 16 may not be construed to prohibit any dollar-
                denominated currency that is open, permissionless, and 
                private, and fully preserves the privacy protections of 
                United States coins and physical currency.
                    ``(D) Central bank digital currency defined.--In 
                this paragraph, the term `central bank digital 
                currency' means a form of digital money or monetary 
                value that is--
                            ``(i) denominated in the national unit of 
                        account;
                            ``(ii) a direct liability of the Federal 
                        Reserve System; and
                            ``(iii) widely available to the general 
                        public.''.

SEC. 5. SENSE OF CONGRESS.

    It is the sense of Congress that the Board of Governors of the 
Federal Reserve does not have the authority to issue a central bank 
digital currency, or any digital asset that is substantially similar 
under any other name or label, and will not have such authority unless 
Congress grants such authority pursuant to section 8 of article I of 
the Constitution of the United States.
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