Us Congress 2023-2024 Regular Session

Us Congress House Bill HB5403 Compare Versions

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Version 2 (New)

Old	New		Differences
	1	+	IB
	2	+	Union Calendar No. 409
1	3		118THCONGRESS
2	4		2
3	5		DSESSION H. R. 5403
4		-	AN ACT
	6	+	[Report No. 118–493]
	7	+	To amend the Federal Reserve Act to prohibit the Federal reserve banks
	8	+	from offering certain products or services directly to an individual, to
	9	+	prohibit the use of central bank digital currency for monetary policy,
	10	+	and for other purposes.
	11	+	IN THE HOUSE OF REPRESENTATIVES
	12	+	SEPTEMBER12, 2023
	13	+	Mr. E
	14	+	MMER(for himself, Mr. BACON, Mr. BIGGS, Mr. BOST, Mr. BRECHEEN,
	15	+	Mr. C
	16	+	LOUD, Mr. DAVIDSON, Mr. DONALDS, Mr. DUNCAN, Mr. FALLON,
	17	+	Mr. F
	18	+	ITZGERALD, Mr. FLOOD, Mr. SCOTTFRANKLINof Florida, Mr.
	19	+	G
	20	+	OSAR, Ms. GREENEof Georgia, Mr. GROTHMAN, Mr. HERN, Mr. HILL,
	21	+	Mr. J
	22	+	ACKSONof Texas, Mr. KEANof New Jersey, Mr. KILEY, Mrs. KIM
	23	+	of California, Mr. L
	24	+	ATURNER, Mrs. LESKO, Ms. LETLOW, Mr.
	25	+	L
	26	+	OUDERMILK, Mrs. LUNA, Ms. MACE, Mr. MEUSER, Mrs. MILLERof Illi-
	27	+	nois, Mr. M
	28	+	ILLS, Mr. NORMAN, Mr. PFLUGER, Mr. POSEY, Mr.
	29	+	R
	30	+	ESCHENTHALER, Mr. ROGERSof Alabama, Mr. ROUZER, Mr. AUSTIN
	31	+	S
	32	+	COTTof Georgia, Mr. SELF, Mr. SESSIONS, Mr. SMITHof New Jersey,
	33	+	Mr. S
	34	+	TEIL, Mr. TIMMONS, Mr. VALADAO, Mr. VANDREW, Mr. WEBER
	35	+	of Texas, Mr. Y
	36	+	AKYM, Mr. OGLES, Mr. LAWLER, Mrs. WAGNER, Mrs.
	37	+	H
	38	+	OUCHIN, Ms. HAGEMAN, and Mr. BARR) introduced the following bill;
	39	+	which was referred to the Committee on Financial Services
	40	+	M
	41	+	AY7, 2024
	42	+	Additional sponsors: Mr. G
	43	+	REENof Tennessee, Mr. BABIN, Mr. BURLISON,
	44	+	Mr. L
	45	+	ANGWORTHY, Mrs. CHAVEZ-DEREMER, Mr. WILLIAMSof Texas,
	46	+	Mr. F
	47	+	ERGUSON, Mr. HUIZENGA, Mr. CRAWFORD, Mr. EDWARDS, Mr.
	48	+	G
	49	+	UTHRIE, Mr. CALVERT, Mr. DUNNof Florida, Ms. DELACRUZ, Mr.
	50	+	C
	51	+	LINE, Mr. WILLIAMSof New York, Mr. KUSTOFF, Mr. GOODENof
	52	+	Texas, Mr. F
	53	+	INSTAD, Mr. WENSTRUP, Mrs. FISCHBACH, Mr. MOOREof
	54	+	Alabama, Mr. N
	55	+	EHLS, Mr. ALFORD, Mr. BEANof Florida, Mr. BUCSHON,
	56	+	Mr. C
	57	+	ARL, Mr. AMODEI, Mr. GRAVESof Missouri, Mrs. HARSHBARGER,
	58	+	Mr. C
	59	+	RANE, Mr. CISCOMANI, Mr. HUNT, Mr. EZELL, Mr. BAIRD, Mrs.
	60	+	M
	61	+	ILLERof West Virginia, Mr. KELLYof Mississippi, Mr. BILIRAKIS, Mr.
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	64	+	•HR 5403 RH
	65	+	GUEST, Mr. CURTIS, Mr. WESTERMAN, Mr. LUETKEMEYER, Mr.
	66	+	L
	67	+	AHOOD, Mr. GARBARINO, Mr. CARTERof Georgia, Mr. ROSE, Mr.
	68	+	B
	69	+	ISHOPof North Carolina, Mrs. CAMMACK, Mr. FLEISCHMANN, Mr.
	70	+	M
	71	+	URPHY, Mr. DESJARLAIS, Mr. MOOLENAAR, Mr. MOONEY, Mr.
	72	+	D’E
	73	+	SPOSITO, Mrs. BICE, Mr. FRY, Mr. BANKS, Mr. CARTERof Texas,
	74	+	Mr. S
	75	+	TEUBE, Mr. COLE, Mr. STRONG, Mr. MORAN, Mr. ROSENDALE, Mr.
	76	+	J
	77	+	OHNSONof South Dakota, Ms. GRANGER, Mr. CLYDE, Ms. LEEof Flor-
	78	+	ida, Mr. F
	79	+	EENSTRA, Mr. ARMSTRONG, Mr. GOODof Virginia, Mr.
	80	+	W
	81	+	ALTZ, Mr. TONYGONZALESof Texas, Mrs. RODGERSof Washington,
	82	+	Mr. L
	83	+	UCAS, Mr. MANN, Mr. TIFFANY, Mr. BERGMAN, Ms. VANDUYNE,
	84	+	Mr. C
	85	+	OLLINS, Mr. BURGESS, Mr. KELLYof Pennsylvania, Mr. LAMBORN,
	86	+	Mr. L
	87	+	ATTA, Mr. DUARTE, Mr. CRENSHAW, Mr. NUNNof Iowa, Mr.
	88	+	E
	89	+	LLZEY, Mr. HUDSON, Mrs. MCCLAIN, Mr. ISSA, Mr. STAUBER, Mr.
	90	+	A
	91	+	RRINGTON, Mr. WOMACK, Mr. OWENS, Mr. VANORDEN, Mr. PERRY,
	92	+	Mr. M
	93	+	AST, Mr. GIMENEZ, Mr. ZINKE, Mr. HIGGINSof Louisiana, Mr.
	94	+	A
	95	+	DERHOLT, Mrs. MILLER-MEEKS, Mrs. HINSON, Mr. BALDERSON, Mr.
	96	+	M
	97	+	CCORMICK, Mr. CAREY, Mr. WITTMAN, Mr. PENCE, Ms. MALOY, Mr.
	98	+	M
	99	+	CCLINTOCK, Mr. ROY, Mr. MCCAUL, and Mr. DIAZ-BALART
	100	+	M
	101	+	AY7, 2024
	102	+	Reported with an amendment, committed to the Committee of the Whole
	103	+	House on the State of the Union, and ordered to be printed
	104	+	[Strike out all after the enacting clause and insert the part printed in italic]
	105	+	[For text of introduced bill, see copy of bill as introduced on September 12, 2023]
	106	+	A BILL
5	107		To amend the Federal Reserve Act to prohibit the Federal
6	108		reserve banks from offering certain products or services
7	109		directly to an individual, to prohibit the use of central
8	110		bank digital currency for monetary policy, and for other
9	111		purposes.
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	114	+	•HR 5403 RH
10	115		Be it enacted by the Senate and House of Representa-1
11		-	tives of the United States of America in Congress assembled, 2 2
12		-	•HR 5403 EH
13		-	SECTION 1. SHORT TITLE. 1
14		-	This Act may be cited as the ‘‘CBDC Anti-Surveil-2
15		-	lance State Act’’. 3
16		-	SEC. 2. PROHIBITION ON FEDERAL RESERVE BANKS RE-4
17		-	LATING TO CERTAIN PRODUCTS OR SERV-5
18		-	ICES FOR INDIVIDUALS AND PROHIBITION 6
19		-	ON DIRECTLY ISSUING A CENTRAL BANK DIG-7
20		-	ITAL CURRENCY. 8
21		-	Section 16 of the Federal Reserve Act is amended 9
22		-	by adding at the end the following new paragraph: 10
23		-	‘‘(18) A Federal reserve bank shall not— 11
24		-	‘‘(A) offer products or services directly to 12
25		-	an individual; 13
26		-	‘‘(B) maintain an account on behalf of an 14
27		-	individual; or 15
28		-	‘‘(C) issue a central bank digital currency, 16
29		-	or any digital asset that is substantially similar 17
30		-	under any other name or label, directly to an 18
31		-	individual.’’. 19
32		-	SEC. 3. PROHIBITION ON FEDERAL RESERVE BANKS INDI-20
33		-	RECTLY ISSUING A CENTRAL BANK DIGITAL 21
34		-	CURRENCY. 22
35		-	Section 16 of the Federal Reserve Act, as amended 23
36		-	by section 2, is further amended by adding at the end the 24
37		-	following new paragraph: 25 3
38		-	•HR 5403 EH
39		-	‘‘(19)(A) A Federal reserve bank shall not offer 1
40		-	a central bank digital currency, or any digital asset 2
41		-	that is substantially similar under any other name 3
42		-	or label, indirectly to an individual through a finan-4
43		-	cial institution or other intermediary. 5
44		-	‘‘(B) Subparagraph (A) may not be construed 6
45		-	to prohibit any dollar-denominated currency that is 7
46		-	open, permissionless, and private, and fully preserves 8
47		-	the privacy protections of United States coins and 9
48		-	physical currency.’’. 10
49		-	SEC. 4. PROHIBITION ON THE USE OF CENTRAL BANK DIG-11
50		-	ITAL CURRENCY FOR MONETARY POLICY. 12
51		-	Section 16 of the Federal Reserve Act, as amended 13
52		-	by section 3, is further amended by adding at the end the 14
53		-	following new paragraph: 15
	116	+	tives of the United States of America in Congress assembled, 2
	117	+	SECTION 1. SHORT TITLE. 3
	118	+	This Act may be cited as the ‘‘CBDC Anti-Surveillance 4
	119	+	State Act’’. 5
	120	+	SEC. 2. PROHIBITION ON FEDERAL RESERVE BANKS RELAT-6
	121	+	ING TO CERTAIN PRODUCTS OR SERVICES 7
	122	+	FOR INDIVIDUALS AND PROHIBITION ON DI-8
	123	+	RECTLY ISSUING A CENTRAL BANK DIGITAL 9
	124	+	CURRENCY. 10
	125	+	Section 16 of the Federal Reserve Act is amended by 11
	126	+	adding at the end the following new paragraph: 12
	127	+	‘‘(18) A Federal reserve bank shall not— 13
	128	+	‘‘(A) offer products or services directly to an 14
	129	+	individual; 15
	130	+	‘‘(B) maintain an account on behalf of an 16
	131	+	individual; or 17
	132	+	‘‘(C) issue a central bank digital currency, 18
	133	+	or any digital asset that is substantially similar 19
	134	+	under any other name or label, directly to an in-20
	135	+	dividual.’’. 21
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	138	+	•HR 5403 RH
	139	+	SEC. 3. PROHIBITION ON FEDERAL RESERVE BANKS INDI-1
	140	+	RECTLY ISSUING A CENTRAL BANK DIGITAL 2
	141	+	CURRENCY. 3
	142	+	Section 16 of the Federal Reserve Act, as amended by 4
	143	+	section 2, is further amended by adding at the end the fol-5
	144	+	lowing new paragraph: 6
	145	+	‘‘(19)(A) A Federal reserve bank shall not offer 7
	146	+	a central bank digital currency, or any digital asset 8
	147	+	that is substantially similar under any other name or 9
	148	+	label, indirectly to an individual through a financial 10
	149	+	institution or other intermediary. 11
	150	+	‘‘(B) Subparagraph (A) may not be construed to 12
	151	+	prohibit any dollar-denominated currency that is 13
	152	+	open, permissionless, and private, and fully preserves 14
	153	+	the privacy protections of United States coins and 15
	154	+	physical currency.’’. 16
	155	+	SEC. 4. PROHIBITION ON THE USE OF CENTRAL BANK DIG-17
	156	+	ITAL CURRENCY FOR MONETARY POLICY. 18
	157	+	Section 16 of the Federal Reserve Act, as amended by 19
	158	+	section 3, is further amended by adding at the end the fol-20
	159	+	lowing new paragraph: 21
54	160		‘‘(20) P
55		-	ROHIBITION ON THE USE OF CENTRAL 16
56		-	BANK DIGITAL CURRENCY FOR MONETARY POL -17
57		-	ICY.—The Board of Governors of the Federal Re-18
58		-	serve System and the Federal Open Market Com-19
59		-	mittee shall not use any central bank digital cur-20
60		-	rency, or any digital asset that is substantially simi-21
61		-	lar under any other name or label, to implement 22
62		-	monetary policy.’’. 23 4
63		-	•HR 5403 EH
64		-	SEC. 5. CENTRAL BANK DIGITAL CURRENCY. 1
	161	+	ROHIBITION ON THE USE OF CENTRAL 22
	162	+	BANK DIGITAL CURRENCY FOR MONETARY POLICY .— 23
	163	+	The Board of Governors of the Federal Reserve Sys-24
	164	+	tem and the Federal Open Market Committee shall 25
	165	+	not use any central bank digital currency, or any 26
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	168	+	•HR 5403 RH
	169	+	digital asset that is substantially similar under any 1
	170	+	other name or label, to implement monetary policy.’’. 2
	171	+	SEC. 5. CENTRAL BANK DIGITAL CURRENCY. 3
65	172		(a) I
66		-	NGENERAL.—The Federal Reserve Act (12 2
67		-	~~U.S.C.~~ 221 et seq.) is amended by inserting after section 3
68		-	~~16 the~~ following: 4
69		-	‘‘SEC. 16A. CENTRAL BANK DIGITAL CURRENCY. 5
	173	+	NGENERAL.—The Federal Reserve Act (12 U.S.C. 4
	174	+	221 et seq.) is amended by inserting after section 16 the 5
	175	+	following: 6
	176	+	‘‘SEC. 16A. CENTRAL BANK DIGITAL CURRENCY. 7
70	177		‘‘(a) I
71		-	NGENERAL.—The Board of Governors of the 6
72		-	Federal Reserve System may not, absent Congressional 7
73		-	authorization, design, build, develop, establish, or issue a 8
74		-	central bank digital currency. 9
	178	+	NGENERAL.—The Board of Governors of the 8
	179	+	Federal Reserve System may not, absent Congressional au-9
	180	+	thorization, issue a central bank digital currency. 10
75	181		‘‘(b) C
76		-	~~ENTRALBANKDIGITALCURRENCYDE-10~~
77		-	~~FINED.—~~In this section, the term ‘central bank digital 11
78		-	~~currency’~~ means a form of digital money or monetary 12
79		-	~~value, denominated~~ in the national unit of account, that 13
80		-	~~is a direct liability~~ of the Federal Reserve System.’’. 14
	182	+	ENTRALBANKDIGITALCURRENCYDEFINED.— 11
	183	+	In this section, the term ‘central bank digital currency’ 12
	184	+	means a form of digital money or monetary value, denomi-13
	185	+	nated in the national unit of account, that is a direct liabil-14
	186	+	ity of the Federal Reserve System.’’. 15
81	187		(b) T
82		-	REASURY.—Chapter 3 of subtitle I of title 31 15
83		-	of the United States Code is amended by inserting after 16
84		-	~~section~~ 316 the following: 17
85		-	‘‘SEC. 317. CENTRAL BANK DIGITAL CURRENCY. 18
	188	+	REASURY.—Chapter 3 of subtitle I of title 31 of 16
	189	+	the United States Code is amended by inserting after sec-17
	190	+	tion 316 the following: 18
	191	+	‘‘SEC. 317. CENTRAL BANK DIGITAL CURRENCY. 19
86	192		‘‘(a) I
87		-	NGENERAL.—The Secretary of the Treasury 19
88		-	may not, absent Congressional authorization, direct the 20
89		-	Board of Governors of the Federal Reserve System to de-21
90		-	sign, build, develop, establish, or issue a central bank dig-22
91		-	ital currency. 23
	193	+	NGENERAL.—The Secretary of the Treasury 20
	194	+	may not, absent Congressional authorization, direct the 21
	195	+	Board of Governors of the Federal Reserve System to issue 22
	196	+	a central bank digital currency. 23
92	197		‘‘(b) C
93		-	ENTRALBANKDIGITALCURRENCYDE-24
94		-	FINED.—In this section, the term ‘central bank digital 25
95		-	currency’ means a form of digital money or monetary 26 5
96		-	•HR 5403 EH
97		-	value, denominated in the national unit of account, that 1
98		-	is a direct liability of the central bank.’’. 2
99		-	SEC. 6. PROTECTION FOR OPEN, PERMISSIONLESS, AND 3
100		-	PRIVATE CURRENCY. 4
101		-	This Act and the amendments made by this Act shall 5
102		-	not apply to any dollar-denominated currency that is open, 6
103		-	permissionless, and private, and fully preserves the privacy 7
104		-	protections of United States coins and physical currency. 8
105		-	SEC. 7. SENSE OF CONGRESS. 9
106		-	It is the sense of Congress that the Board of Gov-10
107		-	ernors of the Federal Reserve System should not be per-11
108		-	mitted to develop, create, or implement a central bank dig-12
109		-	ital currency, or use any such tool to implement monetary 13
110		-	policy. 14
111		-	SEC. 8. PROHIBITION ON CENTRAL BANK DIGITAL CUR-15
112		-	RENCY TESTING. 16
113		-	Section 16A of the Federal Reserve Act, as added by 17
114		-	section 5, is amended by adding at the end the following: 18
115		-	‘‘(C) P
116		-	ROHIBITION ON CENTRALBANKDIGITAL 19
117		-	C
118		-	URRENCYTESTING.—Unless authorized by an Act of 20
119		-	Congress enacted after the date of the enactment of this 21
120		-	Act, the Board of Governors of the Federal Reserve Sys-22
121		-	tem and the Federal reserve banks may not establish, 23
122		-	carry out, or approve a program intended to test the prac-24
123		-	ticability of issuing a central bank digital currency, includ-25 6
124		-	•HR 5403 EH
125		-	ing by partnering or coordinating with a private sector en-1
126		-	tity to carry out such a program.’’. 2
127		-	Passed the House of Representatives May 23, 2024.
128		-	Attest:
129		-	Clerk. 118
	198	+	ENTRALBANKDIGITALCURRENCYDEFINED.— 24
	199	+	In this section, the term ‘central bank digital currency’ 25
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	202	+	•HR 5403 RH
	203	+	means a form of digital money or monetary value, denomi-1
	204	+	nated in the national unit of account, that is a direct liabil-2
	205	+	ity of the central bank.’’. 3
	206	+	SEC. 6. PROTECTION FOR OPEN, PERMISSIONLESS, AND 4
	207	+	PRIVATE CURRENCY. 5
	208	+	This Act and the amendments made by this Act shall 6
	209	+	not apply to any dollar-denominated currency that is open, 7
	210	+	permissionless, and private, and fully preserves the privacy 8
	211	+	protections of United States coins and physical currency.’’ 9
	212	+	VerDate Sep 11 2014 23:00 May 08, 2024 Jkt 049200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6203 E:\BILLS\H5403.RH H5403
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	214	+	kjohnson on DSK7ZCZBW3PROD with $$_JOB Union Calendar No.
	215	+	409
	216	+	118
130	217		TH
131	218		CONGRESS
132	219		2
133	220		D
134	221		S
135	222		ESSION
136	223
137	224		H. R. 5403
138		-	AN ACT
	225	+	[Report No. 118–493]
	226	+	A BILL
139	227		To amend the Federal Reserve Act to prohibit the
140	228		Federal reserve banks from offering certain prod-
141	229		ucts or services directly to an individual, to pro-
142	230		hibit the use of central bank digital currency for
143	231		monetary policy, and for other purposes.
	232	+	M
	233	+	AY
	234	+	7, 2024
	235	+	Reported with an amendment, committed to the Com-
	236	+	mittee of the Whole House on the State of the Union,
	237	+	and ordered to be printed
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