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Congress·In Committee·11 months ago

Senate Bill Would Ban Federal Reserve from Developing a Digital Dollar

Also known as: Anti-CBDC Surveillance State Act

Legislative Progress

✓ Filed
Review
Senate
House
President

Impacts

Negative Impacts(1)
Federal Employee
Hurts

Key Points

  • Congress would block the Federal Reserve from creating or issuing a “digital dollar” that people could use like cash.
  • The bill would stop the Federal Reserve from offering services directly to individuals, like holding personal accounts at the Fed.
  • It would also ban the Fed from issuing a digital dollar through banks or other middlemen, not just directly to the public.
  • The bill would bar the Fed from even testing or developing this kind of currency, and from using it to run monetary policy.
  • Supporters frame this as a privacy safeguard; it would also limit future options for faster government-backed digital payments.
EconomyConsumer ProtectionData PrivacyCryptocurrency

Milestones

2 milestones2 actions
Mar 25, 2025Senate

Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Mar 25, 2025

Introduced in Senate

What Happens Next

Projected impacts based on AI analysis

Immediately after the law takes effect (after signature and any effective-date language, if added).

If Congress passes the bill and the President signs it, the Federal Reserve must stop any CBDC testing, study, development, creation, or implementation.

Any official CBDC pilot, research program, or build-out would have to be ended or redirected, which reduces the chance that the public will ever be offered a Fed-issued digital dollar.

As soon as the prohibition becomes law.

Federal reserve banks would be barred from offering accounts or other direct-to-person services tied to a CBDC concept.

Regular people would not be able to open a Fed-run consumer account or wallet for a digital dollar, even if they wanted one.

As soon as the prohibition becomes law.

A CBDC could not be offered to the public through banks, credit unions, or other intermediaries.

Even a “two-step” design (Fed creates CBDC, banks distribute it) would be blocked, so banks would not roll out CBDC balances to customers.

As soon as the prohibition becomes law.

The Federal Reserve and the Federal Open Market Committee would be barred from using a CBDC to run monetary policy.

Interest-rate and money-policy tools would continue to rely on existing systems rather than CBDC-based mechanisms (for example, no CBDC-based policy feature aimed at households).

Related News

4 articles
CBS News·8 months ago

Trump signs landmark GENIUS Act, hailing 'exciting new frontier' for crypto

Lawmakers approved the Anti-CBDC Surveillance State Act, which prevents the Federal Reserve from issuing any retail central bank digital currency directly to Americans. The legislation is seen by the Trump administration as a way to prioritize private innovation over government-run currency.

C=
BNN Bloomberg·8 months ago

Crypto investors look ahead to policy wins, propelling bitcoin to record high

The House is set to vote on the Anti-CBDC Surveillance State Act during 'Crypto Week.' The bill is part of a broader GOP push to revamp rules in favor of the industry and block the development of a government-controlled digital dollar that could compete with private stablecoins.

C+
Fox Business·about 2 years ago

Cruz, GOP senators double down on anti-central bank digital currency legislation

Senator Ted Cruz and GOP colleagues introduced the Senate companion to the Anti-CBDC Surveillance State Act. Cruz argued that a digital dollar would give the government unprecedented surveillance powers, emulating China's use of CBDCs to track personal spending habits.

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Source Information

Document Type

Congressional Bill

Official Title

Anti-CBDC Surveillance State Act

Bill NumberS 1124
Congress119th Congress
ChamberSenate
Latest ActionRead twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Sponsor

Cosponsors

(6)
R: 6

Analysis generated by AI. While we strive for accuracy, this should not be considered legal or professional advice. Always verify information with official government sources.