[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5032 Introduced in House (IH)]

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118th CONGRESS
  1st Session
                                H. R. 5032

To amend the Federal Reserve Act to prohibit the issuance of a central 
bank digital currency, to prohibit Federal reserve banks from offering 
  certain products or services, to prohibit holding or owning central 
    bank digital currencies of any country, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 27, 2023

Mr. Ogles (for himself, Mr. Bishop of North Carolina, Mr. Donalds, and 
  Mr. Gosar) introduced the following bill; which was referred to the 
                    Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
To amend the Federal Reserve Act to prohibit the issuance of a central 
bank digital currency, to prohibit Federal reserve banks from offering 
  certain products or services, to prohibit holding or owning central 
    bank digital currencies of any country, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Cease Orwellian Surveillance and 
Targeting Act of 2023'' or the ``COST Act of 2023''.

SEC. 2. PROHIBITION ON ISSUING A CENTRAL BANK DIGITAL CURRENCY OR 
              OFFERING CERTAIN PRODUCTS OR SERVICES.

    Section 13 of the Federal Reserve Act is amended by adding at the 
end the following new paragraph:
            ``(15) Prohibition on issuing a central bank digital 
        currency.--
                    ``(A) In general.--The Board of Governors of the 
                Federal Reserve System and the Federal reserve banks 
                may not mint or issue a central bank digital currency.
                    ``(B) Central bank digital currency defined.--In 
                this paragraph, the term `central bank digital 
                currency' means a form of digital money or monetary 
                value, denominated in the national unit of account, 
                that is a direct liability of the Board of Governors of 
                the Federal Reserve System or the central bank of a 
                foreign country.
            ``(16) Prohibition on offer products or services, either 
        directly or indirectly through an intermediary, to an 
        individual or entity.--
                    ``(A) In general.--A Federal reserve bank may not--
                            ``(i) offer products or services to an 
                        individual or entity, either directly or 
                        indirectly through an intermediary;
                            ``(ii) provide coins or currency directly 
                        to an individual or entity; or
                            ``(iii) maintain an account on behalf of an 
                        individual or entity.
                    ``(B) Exceptions.--Subparagraph (A) shall not apply 
                to--
                            ``(i) a depository institution;
                            ``(ii) an insured credit union;
                            ``(iii) the Department of the Treasury;
                            ``(iv) the Federal Home Loan Banks;
                            ``(v) the Federal Home Loan Mortgage 
                        Corporation;
                            ``(vi) the Federal National Mortgage 
                        Association;
                            ``(vii) the Government National Mortgage 
                        Association;
                            ``(viii) a foreign correspondent or agency, 
                        foreign bank or banker (including a branch or 
                        agency of a foreign bank), or foreign state;
                            ``(ix) a financial market utility 
                        designated by the Financial Stability Oversight 
                        Council under section 804 of the Payment, 
                        Clearing, and Settlement Supervision Act of 
                        2010; or
                            ``(x) the International Monetary Fund or 
                        the Bank for Reconstruction and Development.''.

SEC. 3. PROHIBITION ON HOLDING OR OWNING CENTRAL BANK DIGITAL CURRENCY.

    (a) In General.--No person may hold or own central bank digital 
currency of the United States or a foreign country.
    (b) Central Bank Digital Currency Defined.--In this section, the 
term ``central bank digital currency'' has the meaning given that term 
under section 13(15)(B) of the Federal Reserve Act.
    (c) Rulemaking.--The Secretary of the Treasury shall issue such 
rules as may be necessary to carry out this section.
    (d) Effective Date.--Subsection (a) shall take effect after the end 
of the 90-day period beginning on the date of enactment of this Act.
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