The House Financial Services Committee recently passed a bill that prevents the Federal Reserve from issuing a central bank digital currency, or CBDC, to individuals.
The CBDC Anti-Surveillance State Act (H.R. 5403), offered by Rep. Tom Emmer (R-MN), prevents the Federal Reserve from issuing a CBDC directly or indirectly to individuals or maintaining accounts on behalf of individuals. It also prohibits the Secretary of the Treasury from directing the Board of Governors of the Federal Reserve System to issue a CBDC and clarifies that a CBDC can only be issued pursuant to congressional authorization.
The bill passed out of the committee and was received favorably on the House floor during the markup session. Emmer, the Majority Whip, addressed the House this week on the bill.
“I’m extremely proud to have this legislation, that frankly, I have been working on for three years at least, the CBDC Anti-Surveillance State Act, included in your markup today. It’s the first anti-central bank digital currency legislative effort introduced in the United States and for the past two Congresses, we’ve worked with my colleagues and with stakeholder groups to update, improve, and grow support for this bill. Today, this bill has the support of 60 Members of Congress and groups ranging from the Independent Community Bankers Association and American Bankers Association to Club for Growth, Heritage Action, and the Blockchain Association. We’ve come a long way,” Emmer said on the House floor.
Emmer explained that unlike decentralized cryptocurrencies, a central bank digital currency is a digital form of sovereign currency that is designed and issued by a government and transacts on a digital ledger that is controlled by that government.
“In short, a central bank digital currency is government-controlled programmable money that, if not designed to emulate cash, could give the federal government the ability to surveil and restrict Americans’ transactions,” said Emmer.
He noted, however, that the Biden administration issued an executive order placing urgency on central bank digital currency research and development.
The bill is now co-sponsored by 60 House Republicans, including members of the Financial Services Committee. Co-sponsors include Reps. French Hill (R-AR), Warren Davidson (R-OH), Byron Donalds (R-FL), Pete Sessions (R-TX), Young Kim (R-CA), William Timmons (R-SC), Ralph Norman (R-SC), Barry Loudermilk (R-GA), Bryan Steil (R-WI), Scott Fitzgerald (R-WI), Mike Flood (R-NE), Bill Posey (R-FL), Mike Lawler (R-NY), Andy Ogles (R-TN), Erin Houchin (R-IN), Andy Barr (R-KY), Roger Williams (R-TX), Ann Wagner (R-MO) and Bill Huizenga (R-MI).