Main Points:
- Legislative Progress: On April 2, the U.S. House Financial Services Committee approved the “CBDC Anti-Surveillance State Act,” which would prohibit the issuance and use of central bank digital currencies (CBDCs) by the Federal Reserve and other federal banks.
- Committee Vote: The bill passed the committee vote with a 27–22 margin. It is one of five bills discussed in the markup session, along with another bill aimed at regulating payment stablecoins.
- Broad Support: The bill, introduced by Representative Tom Emmer of Minnesota, already has 114 co-sponsors and enjoys backing from diverse groups, including the Independent Community Bankers of America (ICBA), the American Bankers Association (ABA), Club for Growth, Heritage Action, and the Blockchain Association.
- Political Opposition to CBDCs: Many Republican lawmakers have repeatedly warned federal agencies like the Federal Reserve and the Treasury to halt their CBDC development. Emmer stated that the reintroduced bill aims to codify a presidential order signed by Donald Trump on January 23, 2025, which banned the establishment, issuance, circulation, and use of CBDCs in the U.S.
- Uncertain Future: Although the bill’s fate in the full House and Senate remains uncertain, similar proposals—such as one introduced by Senator Ted Cruz on March 26—highlight a coordinated Republican push to legislate against CBDCs.
1. A Bold Move Against CBDCs
On April 2, the U.S. House Financial Services Committee took a significant step by approving the “CBDC Anti-Surveillance State Act.” This legislation aims to prohibit the issuance and use of central bank digital currencies (CBDCs) by the Federal Reserve and other federal banking institutions. This move comes as many Republican lawmakers express strong concerns that CBDCs could enable unprecedented surveillance of U.S. citizens’ financial transactions.
2. Committee Vote and Legislative Details
During the committee session on April 2, the bill was approved by a 27–22 vote. It is one of five bills under discussion during the markup, including another bill focused on regulating payment stablecoins. Representative Tom Emmer of Minnesota, the bill’s primary sponsor, noted that in a previous session the bill passed the House with a 216–192 vote. Currently, the legislation has garnered the support of 114 co-sponsors and backing from influential groups such as the ICBA, ABA, Club for Growth, Heritage Action, and the Blockchain Association.
3. Opposition to CBDCs
The bill reflects a long-standing Republican opposition to CBDC development by agencies like the Federal Reserve and the Treasury. Critics argue that CBDCs pose a risk of infringing on financial privacy and enabling mass surveillance of individual transactions. When reintroduced in March 2025, Emmer explained that the intention was to codify President Trump’s January 23, 2025, executive order, which banned the establishment, issuance, circulation, and use of CBDCs within the United States.
4. The Future of the Bill
While the current committee approval marks progress, the future of the bill remains uncertain as it moves to a full House vote and potentially to the Senate. Senator Ted Cruz’s similar proposal on March 26 underscores the growing momentum among Republicans to block CBDC development. Despite considerable interest from federal agencies in exploring CBDCs, mounting concerns over privacy and surveillance continue to fuel opposition within Congress.
5. A Pivotal Moment in U.S. Digital Currency Policy
The approval of the CBDC ban bill by the U.S. House Financial Services Committee signals a critical juncture in U.S. digital currency policy. As Republican lawmakers rally against what they view as potential threats to financial privacy, the fate of CBDCs in the United States hangs in the balance. With the full legislative vote on the horizon, the outcome of this bill could fundamentally shape the future of digital currencies and the regulatory landscape for financial innovation in America.
