IB
Union Calendar No. 409
118THCONGRESS
2
DSESSION H. R. 5403
[Report No. 118–493]
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
SEPTEMBER12, 2023
Mr. E
MMER(for himself, Mr. BACON, Mr. BIGGS, Mr. BOST, Mr. BRECHEEN,
Mr. C
LOUD, Mr. DAVIDSON, Mr. DONALDS, Mr. DUNCAN, Mr. FALLON,
Mr. F
ITZGERALD, Mr. FLOOD, Mr. SCOTTFRANKLINof Florida, Mr.
G
OSAR, Ms. GREENEof Georgia, Mr. GROTHMAN, Mr. HERN, Mr. HILL,
Mr. J
ACKSONof Texas, Mr. KEANof New Jersey, Mr. KILEY, Mrs. KIM
of California, Mr. L
ATURNER, Mrs. LESKO, Ms. LETLOW, Mr.
L
OUDERMILK, Mrs. LUNA, Ms. MACE, Mr. MEUSER, Mrs. MILLERof Illi-
nois, Mr. M
ILLS, Mr. NORMAN, Mr. PFLUGER, Mr. POSEY, Mr.
R
ESCHENTHALER, Mr. ROGERSof Alabama, Mr. ROUZER, Mr. AUSTIN
S
COTTof Georgia, Mr. SELF, Mr. SESSIONS, Mr. SMITHof New Jersey,
Mr. S
TEIL, Mr. TIMMONS, Mr. VALADAO, Mr. VANDREW, Mr. WEBER
of Texas, Mr. Y
AKYM, Mr. OGLES, Mr. LAWLER, Mrs. WAGNER, Mrs.
H
OUCHIN, Ms. HAGEMAN, and Mr. BARR) introduced the following bill;
which was referred to the Committee on Financial Services
M
AY7, 2024
Additional sponsors: Mr. G
REENof Tennessee, Mr. BABIN, Mr. BURLISON,
Mr. L
ANGWORTHY, Mrs. CHAVEZ-DEREMER, Mr. WILLIAMSof Texas,
Mr. F
ERGUSON, Mr. HUIZENGA, Mr. CRAWFORD, Mr. EDWARDS, Mr.
G
UTHRIE, Mr. CALVERT, Mr. DUNNof Florida, Ms. DELACRUZ, Mr.
C
LINE, Mr. WILLIAMSof New York, Mr. KUSTOFF, Mr. GOODENof
Texas, Mr. F
INSTAD, Mr. WENSTRUP, Mrs. FISCHBACH, Mr. MOOREof
Alabama, Mr. N
EHLS, Mr. ALFORD, Mr. BEANof Florida, Mr. BUCSHON,
Mr. C
ARL, Mr. AMODEI, Mr. GRAVESof Missouri, Mrs. HARSHBARGER,
Mr. C
RANE, Mr. CISCOMANI, Mr. HUNT, Mr. EZELL, Mr. BAIRD, Mrs.
M
ILLERof West Virginia, Mr. KELLYof Mississippi, Mr. BILIRAKIS, Mr.
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•HR 5403 RH
GUEST, Mr. CURTIS, Mr. WESTERMAN, Mr. LUETKEMEYER, Mr.
L
AHOOD, Mr. GARBARINO, Mr. CARTERof Georgia, Mr. ROSE, Mr.
B
ISHOPof North Carolina, Mrs. CAMMACK, Mr. FLEISCHMANN, Mr.
M
URPHY, Mr. DESJARLAIS, Mr. MOOLENAAR, Mr. MOONEY, Mr.
D’E
SPOSITO, Mrs. BICE, Mr. FRY, Mr. BANKS, Mr. CARTERof Texas,
Mr. S
TEUBE, Mr. COLE, Mr. STRONG, Mr. MORAN, Mr. ROSENDALE, Mr.
J
OHNSONof South Dakota, Ms. GRANGER, Mr. CLYDE, Ms. LEEof Flor-
ida, Mr. F
EENSTRA, Mr. ARMSTRONG, Mr. GOODof Virginia, Mr.
W
ALTZ, Mr. TONYGONZALESof Texas, Mrs. RODGERSof Washington,
Mr. L
UCAS, Mr. MANN, Mr. TIFFANY, Mr. BERGMAN, Ms. VANDUYNE,
Mr. C
OLLINS, Mr. BURGESS, Mr. KELLYof Pennsylvania, Mr. LAMBORN,
Mr. L
ATTA, Mr. DUARTE, Mr. CRENSHAW, Mr. NUNNof Iowa, Mr.
E
LLZEY, Mr. HUDSON, Mrs. MCCLAIN, Mr. ISSA, Mr. STAUBER, Mr.
A
RRINGTON, Mr. WOMACK, Mr. OWENS, Mr. VANORDEN, Mr. PERRY,
Mr. M
AST, Mr. GIMENEZ, Mr. ZINKE, Mr. HIGGINSof Louisiana, Mr.
A
DERHOLT, Mrs. MILLER-MEEKS, Mrs. HINSON, Mr. BALDERSON, Mr.
M
CCORMICK, Mr. CAREY, Mr. WITTMAN, Mr. PENCE, Ms. MALOY, Mr.
M
CCLINTOCK, Mr. ROY, Mr. MCCAUL, and Mr. DIAZ-BALART
M
AY7, 2024
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed in italic]
[For text of introduced bill, see copy of bill as introduced on September 12, 2023]
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.
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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-Surveillance 4
State Act’’. 5
SEC. 2. PROHIBITION ON FEDERAL RESERVE BANKS RELAT-6
ING TO CERTAIN PRODUCTS OR SERVICES 7
FOR INDIVIDUALS AND PROHIBITION ON DI-8
RECTLY ISSUING A CENTRAL BANK DIGITAL 9
CURRENCY. 10
Section 16 of the Federal Reserve Act is amended by 11
adding at the end the following new paragraph: 12
‘‘(18) A Federal reserve bank shall not— 13
‘‘(A) offer products or services directly to an 14
individual; 15
‘‘(B) maintain an account on behalf of an 16
individual; or 17
‘‘(C) issue a central bank digital currency, 18
or any digital asset that is substantially similar 19
under any other name or label, directly to an in-20
dividual.’’. 21
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SEC. 3. PROHIBITION ON FEDERAL RESERVE BANKS INDI-1
RECTLY ISSUING A CENTRAL BANK DIGITAL 2
CURRENCY. 3
Section 16 of the Federal Reserve Act, as amended by 4
section 2, is further amended by adding at the end the fol-5
lowing new paragraph: 6
‘‘(19)(A) A Federal reserve bank shall not offer 7
a central bank digital currency, or any digital asset 8
that is substantially similar under any other name or 9
label, indirectly to an individual through a financial 10
institution or other intermediary. 11
‘‘(B) Subparagraph (A) may not be construed to 12
prohibit any dollar-denominated currency that is 13
open, permissionless, and private, and fully preserves 14
the privacy protections of United States coins and 15
physical currency.’’. 16
SEC. 4. PROHIBITION ON THE USE OF CENTRAL BANK DIG-17
ITAL CURRENCY FOR MONETARY POLICY. 18
Section 16 of the Federal Reserve Act, as amended by 19
section 3, is further amended by adding at the end the fol-20
lowing new paragraph: 21
‘‘(20) P
ROHIBITION ON THE USE OF CENTRAL 22
BANK DIGITAL CURRENCY FOR MONETARY POLICY .— 23
The Board of Governors of the Federal Reserve Sys-24
tem and the Federal Open Market Committee shall 25
not use any central bank digital currency, or any 26
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•HR 5403 RH
digital asset that is substantially similar under any 1
other name or label, to implement monetary policy.’’. 2
SEC. 5. CENTRAL BANK DIGITAL CURRENCY. 3
(a) I
NGENERAL.—The Federal Reserve Act (12 U.S.C. 4
221 et seq.) is amended by inserting after section 16 the 5
following: 6
‘‘SEC. 16A. CENTRAL BANK DIGITAL CURRENCY. 7
‘‘(a) I
NGENERAL.—The Board of Governors of the 8
Federal Reserve System may not, absent Congressional au-9
thorization, issue a central bank digital currency. 10
‘‘(b) C
ENTRALBANKDIGITALCURRENCYDEFINED.— 11
In this section, the term ‘central bank digital currency’ 12
means a form of digital money or monetary value, denomi-13
nated in the national unit of account, that is a direct liabil-14
ity of the Federal Reserve System.’’. 15
(b) T
REASURY.—Chapter 3 of subtitle I of title 31 of 16
the United States Code is amended by inserting after sec-17
tion 316 the following: 18
‘‘SEC. 317. CENTRAL BANK DIGITAL CURRENCY. 19
‘‘(a) I
NGENERAL.—The Secretary of the Treasury 20
may not, absent Congressional authorization, direct the 21
Board of Governors of the Federal Reserve System to issue 22
a central bank digital currency. 23
‘‘(b) C
ENTRALBANKDIGITALCURRENCYDEFINED.— 24
In this section, the term ‘central bank digital currency’ 25
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means a form of digital money or monetary value, denomi-1
nated in the national unit of account, that is a direct liabil-2
ity of the central bank.’’. 3
SEC. 6. PROTECTION FOR OPEN, PERMISSIONLESS, AND 4
PRIVATE CURRENCY. 5
This Act and the amendments made by this Act shall 6
not apply to any dollar-denominated currency that is open, 7
permissionless, and private, and fully preserves the privacy 8
protections of United States coins and physical currency.’’ 9
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409
118
TH
CONGRESS
2
D
S
ESSION
H. R. 5403
[Report No. 118–493]
A BILL
To amend the Federal Reserve Act to prohibit the
Federal reserve banks from offering certain prod-
ucts or services directly to an individual, to pro-
hibit the use of central bank digital currency for
monetary policy, and for other purposes.
M
AY
7, 2024
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union,
and ordered to be printed
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