118THCONGRESS
2
DSESSION H. R. 5403
AN ACT
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 2
•HR 5403 EH
SECTION 1. SHORT TITLE. 1
This Act may be cited as the ‘‘CBDC Anti-Surveil-2
lance State Act’’. 3
SEC. 2. PROHIBITION ON FEDERAL RESERVE BANKS RE-4
LATING TO CERTAIN PRODUCTS OR SERV-5
ICES FOR INDIVIDUALS AND PROHIBITION 6
ON DIRECTLY ISSUING A CENTRAL BANK DIG-7
ITAL CURRENCY. 8
Section 16 of the Federal Reserve Act is amended 9
by adding at the end the following new paragraph: 10
‘‘(18) A Federal reserve bank shall not— 11
‘‘(A) offer products or services directly to 12
an individual; 13
‘‘(B) maintain an account on behalf of an 14
individual; or 15
‘‘(C) issue a central bank digital currency, 16
or any digital asset that is substantially similar 17
under any other name or label, directly to an 18
individual.’’. 19
SEC. 3. PROHIBITION ON FEDERAL RESERVE BANKS INDI-20
RECTLY ISSUING A CENTRAL BANK DIGITAL 21
CURRENCY. 22
Section 16 of the Federal Reserve Act, as amended 23
by section 2, is further amended by adding at the end the 24
following new paragraph: 25 3
•HR 5403 EH
‘‘(19)(A) A Federal reserve bank shall not offer 1
a central bank digital currency, or any digital asset 2
that is substantially similar under any other name 3
or label, indirectly to an individual through a finan-4
cial institution or other intermediary. 5
‘‘(B) Subparagraph (A) may not be construed 6
to prohibit any dollar-denominated currency that is 7
open, permissionless, and private, and fully preserves 8
the privacy protections of United States coins and 9
physical currency.’’. 10
SEC. 4. PROHIBITION ON THE USE OF CENTRAL BANK DIG-11
ITAL CURRENCY FOR MONETARY POLICY. 12
Section 16 of the Federal Reserve Act, as amended 13
by section 3, is further amended by adding at the end the 14
following new paragraph: 15
‘‘(20) P
ROHIBITION 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 shall not use any central bank digital cur-20
rency, or any digital asset that is substantially simi-21
lar under any other name or label, to implement 22
monetary policy.’’. 23 4
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SEC. 5. CENTRAL BANK DIGITAL CURRENCY. 1
(a) I
NGENERAL.—The Federal Reserve Act (12 2
U.S.C. 221 et seq.) is amended by inserting after section 3
16 the following: 4
‘‘SEC. 16A. CENTRAL BANK DIGITAL CURRENCY. 5
‘‘(a) I
NGENERAL.—The Board of Governors of the 6
Federal Reserve System may not, absent Congressional 7
authorization, design, build, develop, establish, or issue a 8
central bank digital currency. 9
‘‘(b) C
ENTRALBANKDIGITALCURRENCYDE-10
FINED.—In this section, the term ‘central bank digital 11
currency’ means a form of digital money or monetary 12
value, denominated in the national unit of account, that 13
is a direct liability of the Federal Reserve System.’’. 14
(b) T
REASURY.—Chapter 3 of subtitle I of title 31 15
of the United States Code is amended by inserting after 16
section 316 the following: 17
‘‘SEC. 317. CENTRAL BANK DIGITAL CURRENCY. 18
‘‘(a) I
NGENERAL.—The Secretary of the Treasury 19
may not, absent Congressional authorization, direct the 20
Board of Governors of the Federal Reserve System to de-21
sign, build, develop, establish, or issue a central bank dig-22
ital currency. 23
‘‘(b) C
ENTRALBANKDIGITALCURRENCYDE-24
FINED.—In this section, the term ‘central bank digital 25
currency’ means a form of digital money or monetary 26 5
•HR 5403 EH
value, denominated in the national unit of account, that 1
is a direct liability of the central bank.’’. 2
SEC. 6. PROTECTION FOR OPEN, PERMISSIONLESS, AND 3
PRIVATE CURRENCY. 4
This Act and the amendments made by this Act shall 5
not apply to any dollar-denominated currency that is open, 6
permissionless, and private, and fully preserves the privacy 7
protections of United States coins and physical currency. 8
SEC. 7. SENSE OF CONGRESS. 9
It is the sense of Congress that the Board of Gov-10
ernors of the Federal Reserve System should not be per-11
mitted to develop, create, or implement a central bank dig-12
ital currency, or use any such tool to implement monetary 13
policy. 14
SEC. 8. PROHIBITION ON CENTRAL BANK DIGITAL CUR-15
RENCY TESTING. 16
Section 16A of the Federal Reserve Act, as added by 17
section 5, is amended by adding at the end the following: 18
‘‘(C) P
ROHIBITION ON CENTRALBANKDIGITAL 19
C
URRENCYTESTING.—Unless authorized by an Act of 20
Congress enacted after the date of the enactment of this 21
Act, the Board of Governors of the Federal Reserve Sys-22
tem and the Federal reserve banks may not establish, 23
carry out, or approve a program intended to test the prac-24
ticability of issuing a central bank digital currency, includ-25 6
•HR 5403 EH
ing by partnering or coordinating with a private sector en-1
tity to carry out such a program.’’. 2
Passed the House of Representatives May 23, 2024.
Attest:
Clerk. 118
TH
CONGRESS
2
D
S
ESSION
H. R. 5403
AN ACT
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.