S. 1124 — Anti-CBDC Surveillance State Act

This section prohibits a Federal Reserve Bank from (1) offering products or services directly to an individual; (2) maintaining an account on behalf of an individual; or (3) issuing a central bank digital currency, as defined in section 10(11)(D) of the Federal Reserve Act, or any substantially similar digital asset under another name or label. (Thus, Federal Reserve Banks—which provide payment, clearing, and other financial services primarily to depository institutions and the U.S. government—may not extend such services or a digital currency directly to individuals.)

This section prohibits Federal Reserve Banks from indirectly offering a central bank digital currency (CBDC)—as defined in section 10(11)(D)—or any substantially similar digital asset under another name or label to an individual through a financial institution or other intermediary.

This section prohibits the Board of Governors of the Federal Reserve System from testing, studying, developing, creating, or implementing a central bank digital currency (CBDC)—defined as a digital form of money or monetary value denominated in the national unit of account, a direct liability of the Federal Reserve System, and widely available to the general public—or any substantially similar digital asset under another name or label. It further prohibits the Board and the Federal Open Market Committee from using a CBDC or similar digital asset to implement monetary policy. An exception applies to any dollar-denominated currency that is open, permissionless, private, and fully preserves the privacy protections of U.S. coins and physical currency.

This section expresses the sense of Congress that the Board of Governors of the Federal Reserve lacks authority to issue a central bank digital currency or substantially similar digital asset unless Congress grants such authority.