[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5403 Reported in House (RH)]

<DOC>





                                                 Union Calendar No. 409
118th CONGRESS
  2d Session
                                H. R. 5403

                          [Report No. 118-493]

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.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 12, 2023

 Mr. Emmer (for himself, Mr. Bacon, Mr. Biggs, Mr. Bost, Mr. Brecheen, 
   Mr. Cloud, Mr. Davidson, Mr. Donalds, Mr. Duncan, Mr. Fallon, Mr. 
 Fitzgerald, Mr. Flood, Mr. Scott Franklin of Florida, Mr. Gosar, Ms. 
  Greene of Georgia, Mr. Grothman, Mr. Hern, Mr. Hill, Mr. Jackson of 
 Texas, Mr. Kean of New Jersey, Mr. Kiley, Mrs. Kim of California, Mr. 
LaTurner, Mrs. Lesko, Ms. Letlow, Mr. Loudermilk, Mrs. Luna, Ms. Mace, 
    Mr. Meuser, Mrs. Miller of Illinois, Mr. Mills, Mr. Norman, Mr. 
   Pfluger, Mr. Posey, Mr. Reschenthaler, Mr. Rogers of Alabama, Mr. 
Rouzer, Mr. Austin Scott of Georgia, Mr. Self, Mr. Sessions, Mr. Smith 
 of New Jersey, Mr. Steil, Mr. Timmons, Mr. Valadao, Mr. Van Drew, Mr. 
  Weber of Texas, Mr. Yakym, Mr. Ogles, Mr. Lawler, Mrs. Wagner, Mrs. 
  Houchin, Ms. Hageman, and Mr. Barr) introduced the following bill; 
       which was referred to the Committee on Financial Services

                              May 7, 2024

 Additional sponsors: Mr. Green of Tennessee, Mr. Babin, Mr. Burlison, 
    Mr. Langworthy, Mrs. Chavez-DeRemer, Mr. Williams of Texas, Mr. 
  Ferguson, Mr. Huizenga, Mr. Crawford, Mr. Edwards, Mr. Guthrie, Mr. 
 Calvert, Mr. Dunn of Florida, Ms. De La Cruz, Mr. Cline, Mr. Williams 
    of New York, Mr. Kustoff, Mr. Gooden of Texas, Mr. Finstad, Mr. 
Wenstrup, Mrs. Fischbach, Mr. Moore of Alabama, Mr. Nehls, Mr. Alford, 
 Mr. Bean of Florida, Mr. Bucshon, Mr. Carl, Mr. Amodei, Mr. Graves of 
  Missouri, Mrs. Harshbarger, Mr. Crane, Mr. Ciscomani, Mr. Hunt, Mr. 
     Ezell, Mr. Baird, Mrs. Miller of West Virginia, Mr. Kelly of 
 Mississippi, Mr. Bilirakis, Mr. Guest, Mr. Curtis, Mr. Westerman, Mr. 
  Luetkemeyer, Mr. LaHood, Mr. Garbarino, Mr. Carter of Georgia, Mr. 
Rose, Mr. Bishop of North Carolina, Mrs. Cammack, Mr. Fleischmann, Mr. 
Murphy, Mr. DesJarlais, Mr. Moolenaar, Mr. Mooney, Mr. D'Esposito, Mrs. 
 Bice, Mr. Fry, Mr. Banks, Mr. Carter of Texas, Mr. Steube, Mr. Cole, 
Mr. Strong, Mr. Moran, Mr. Rosendale, Mr. Johnson of South Dakota, Ms. 
 Granger, Mr. Clyde, Ms. Lee of Florida, Mr. Feenstra, Mr. Armstrong, 
   Mr. Good of Virginia, Mr. Waltz, Mr. Tony Gonzales of Texas, Mrs. 
 Rodgers of Washington, Mr. Lucas, Mr. Mann, Mr. Tiffany, Mr. Bergman, 
Ms. Van Duyne, Mr. Collins, Mr. Burgess, Mr. Kelly of Pennsylvania, Mr. 
  Lamborn, Mr. Latta, Mr. Duarte, Mr. Crenshaw, Mr. Nunn of Iowa, Mr. 
Ellzey, Mr. Hudson, Mrs. McClain, Mr. Issa, Mr. Stauber, Mr. Arrington, 
Mr. Womack, Mr. Owens, Mr. Van Orden, Mr. Perry, Mr. Mast, Mr. Gimenez, 
 Mr. Zinke, Mr. Higgins of Louisiana, Mr. Aderholt, Mrs. Miller-Meeks, 
Mrs. Hinson, Mr. Balderson, Mr. McCormick, Mr. Carey, Mr. Wittman, Mr. 
  Pence, Ms. Maloy, Mr. McClintock, Mr. Roy, Mr. McCaul, and Mr. Diaz-
                                 Balart

                              May 7, 2024

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]
    [For text of introduced bill, see copy of bill as introduced on 
                          September 12, 2023]


_______________________________________________________________________

                                 A BILL


 
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 Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``CBDC Anti-Surveillance State Act''.

SEC. 2. PROHIBITION ON FEDERAL RESERVE BANKS RELATING TO CERTAIN 
              PRODUCTS OR SERVICES FOR INDIVIDUALS AND PROHIBITION ON 
              DIRECTLY ISSUING A CENTRAL BANK DIGITAL CURRENCY.

    Section 16 of the Federal Reserve Act is amended by adding at the 
end the following new paragraph:
            ``(18) A Federal reserve bank shall not--
                    ``(A) offer products or services directly to an 
                individual;
                    ``(B) maintain an account on behalf of an 
                individual; or
                    ``(C) issue a central bank digital currency, or any 
                digital asset that is substantially similar under any 
                other name or label, directly to an individual.''.

SEC. 3. PROHIBITION ON FEDERAL RESERVE BANKS INDIRECTLY ISSUING A 
              CENTRAL BANK DIGITAL CURRENCY.

    Section 16 of the Federal Reserve Act, as amended by section 2, is 
further amended by adding at the end the following new paragraph:
            ``(19)(A) A Federal reserve bank shall not offer a central 
        bank digital currency, or any digital asset that is 
        substantially similar under any other name or label, indirectly 
        to an individual through a financial institution or other 
        intermediary.
            ``(B) Subparagraph (A) may not be construed to prohibit any 
        dollar-denominated currency that is open, permissionless, and 
        private, and fully preserves the privacy protections of United 
        States coins and physical currency.''.

SEC. 4. PROHIBITION ON THE USE OF CENTRAL BANK DIGITAL CURRENCY FOR 
              MONETARY POLICY.

    Section 16 of the Federal Reserve Act, as amended by section 3, is 
further amended by adding at the end the following new paragraph:
            ``(20) Prohibition on the use of central bank digital 
        currency for monetary policy.--The Board of Governors of the 
        Federal Reserve System and the Federal Open Market Committee 
        shall not use any central bank digital currency, or any digital 
        asset that is substantially similar under any other name or 
        label, to implement monetary policy.''.

SEC. 5. CENTRAL BANK DIGITAL CURRENCY.

    (a) In General.--The Federal Reserve Act (12 U.S.C. 221 et seq.) is 
amended by inserting after section 16 the following:

``SEC. 16A. CENTRAL BANK DIGITAL CURRENCY.

    ``(a) In General.--The Board of Governors of the Federal Reserve 
System may not, absent Congressional authorization, issue a central 
bank digital currency.
    ``(b) Central Bank Digital Currency Defined.--In this section, 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 Federal Reserve System.''.
    (b) Treasury.--Chapter 3 of subtitle I of title 31 of the United 
States Code is amended by inserting after section 316 the following:

``SEC. 317. CENTRAL BANK DIGITAL CURRENCY.

    ``(a) In General.--The Secretary of the Treasury may not, absent 
Congressional authorization, direct the Board of Governors of the 
Federal Reserve System to issue a central bank digital currency.
    ``(b) Central Bank Digital Currency Defined.--In this section, 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 central bank.''.

SEC. 6. PROTECTION FOR OPEN, PERMISSIONLESS, AND PRIVATE CURRENCY.

    This Act and the amendments made by this Act shall not apply to any 
dollar-denominated currency that is open, permissionless, and private, 
and fully preserves the privacy protections of United States coins and 
physical currency.''
                                                 Union Calendar No. 409

118th CONGRESS

  2d Session

                               H. R. 5403

                          [Report No. 118-493]

_______________________________________________________________________

                                 A BILL

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.

_______________________________________________________________________

                              May 7, 2024

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed