Us Congress Senate Bill SB1124

Us Congress 2025-2026 Regular Session

• Introduced: 3/25/25
• Refer: 3/25/25

Caption

Anti-CBDC Surveillance State Act

Impact

The proposed changes under SB1124 would significantly alter the framework of financial regulation by disallowing the Federal Reserve from engaging in practices typically associated with digital currencies. It states that the Federal Reserve's Board of Governors cannot study, create, or implement a CBDC and cannot use it for implementing monetary policy. Opponents of digital currencies claim that a CBDC could lead to surveillance and control over individuals’ financial transactions, which this bill seeks to mitigate.

Summary

SB1124, also known as the 'Anti-CBDC Surveillance State Act', aims to amend the Federal Reserve Act to explicitly prohibit Federal Reserve banks from offering certain products or services directly to individuals. Notably, it seeks to prevent the issuance of a Central Bank Digital Currency (CBDC), asserting that such a currency cannot be directly or indirectly made available to individuals through financial institutions or other intermediaries. This legislation emerges in the context of increasing discussions around digital currencies and their implications on monetary policy and state control over financial systems.

Contention

The bill has generated debate regarding the role of the Federal Reserve in the age of digital finance and the extent of its powers. Proponents argue that the bill is essential in preserving individual privacy and preventing government overreach into personal finances, particularly via digital means. Critics, however, may argue that outright prohibition could inhibit innovation within the financial sector and limit the adaptability of the monetary system to future challenges posed by cryptocurrencies and digital assets.