S. 1124

119 S1124 IS: Anti-CBDC Surveillance State Act
 U.S. Senate
 2025-03-25
 text/xml
 EN
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 II  119th CONGRESS  1st Session  S. 1124  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.
1.
Short title
This Act may be cited as the   Anti-CBDC Surveillance State Act  .
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.
 .
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.
 .
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.
 .
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.