Federal

CBDC Anti-Surveillance State Act

Source: Congress.gov · 517 words in original text

What This Bill Does

This bill amends the Federal Reserve Act to prevent Federal Reserve banks from offering certain financial products directly to regular individuals. The bill also prohibits the Federal Reserve from using central bank digital currency (a digital form of money created by the Federal Reserve) to conduct monetary policy (the tools the Federal Reserve uses to manage interest rates and the money supply).

Who It Affects

Federal Reserve banks and the Federal Reserve's Board of Governors and Federal Open Market Committee (the group that makes decisions about monetary policy).

Key Provisions

• Federal Reserve banks cannot offer products or services directly to individuals, maintain accounts on behalf of individuals, or issue central bank digital currency directly to individuals, except when specifically authorized by law (Sec. 2) • The Federal Reserve cannot use central bank digital currency to implement monetary policy (Sec. 3) • If the Federal Reserve conducts any central bank digital currency study or pilot program (a test project), it must consult with each Federal Reserve bank and issue quarterly reports to Congress on its findings (Sec. 4)

What Changes

If passed, Federal Reserve banks would lose the ability to offer products, services or accounts directly to individual Americans. The Federal Reserve would be prohibited from using central bank digital currency as a tool for monetary policy.

Important Definitions

None defined in bill text.

I 118TH CONGRESS 1ST SESSION H. R. 1122 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 HOUSE OF REPRESENTATIVES FEBRUARY 21, 2023 Mr. EMMER (for himself, Mr. HILL, Mr. DAVIDSON, Mr. FLOOD, Mr. NOR- MAN, Mr. DONALDS, Mr. BIGGS, Mr. LOUDERMILK, Mr. SESSIONS, and Mrs. KIM of California) introduced the following bill; which was referred to the Committee on Financial Services 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 Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘CBDC Anti-Surveil- 4 lance State Act’’. 5 VerDate Sep 11 2014 01:14 Mar 11, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H1122.IH H1122 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 1122 IH SEC. 2. PROHIBITION ON FEDERAL RESERVE BANKS RE- 1 LATING TO CERTAIN PRODUCTS OR SERV- 2 ICES FOR INDIVIDUALS. 3 Section 13 of the Federal Reserve Act is amended 4 by adding at the end the following new paragraph: 5 ‘‘(15) Except as specifically authorized under 6 this Act, a Federal reserve bank may not offer prod- 7 ucts or services directly to an individual, maintain 8 an account on behalf of an individual, or issue a cen- 9 tral bank digital currency directly to an individual.’’. 10 SEC. 3. PROHIBITION ON THE USE OF CENTRAL BANK DIG- 11 ITAL CURRENCY FOR MONETARY POLICY. 12 Section 10 of the Federal Reserve Act is amended 13 by inserting before paragraph (12) the following new para- 14 graph: 15 ‘‘(11) PROHIBITION ON THE USE OF CENTRAL 16 BANK DIGITAL CURRENCY FOR MONETARY POL- 17 ICY.—The Board of Governors of the Federal Re- 18 serve System and the Federal Open Market Com- 19 mittee may not use any central bank digital currency 20 to implement monetary policy.’’. 21 SEC. 4. CENTRAL BANK DIGITAL CURRENCY STUDY AND 22 PILOT PROGRAM COORDINATION. 23 With respect to any central bank digital currency 24 study or pilot program of the Board of Governors of the 25 Federal Reserve System, the Board of Governors shall— 26 VerDate Sep 11 2014 01:14 Mar 11, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H1122.IH H1122 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 1122 IH (1) consult each Federal reserve bank with re- 1 spect to such study or pilot program; and 2 (2) issue quarterly reports to the Congress on 3 findings and determinations made in carrying out 4 such study or pilot program. 5 Æ VerDate Sep 11 2014 01:14 Mar 11, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\H1122.IH H1122 kjohnson on DSK79L0C42PROD with BILLS

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