118 HR 5032 IH: COST Act of 2023 U.S. House of Representatives 2023-07-27 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I118th CONGRESS1st SessionH. R. 5032IN THE HOUSE OF REPRESENTATIVESJuly 27, 2023Mr. 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 ServicesA BILLTo 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.

1.

Short title

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

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..

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.