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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 3801 Introduced in Senate (IS)]

<DOC>

118th CONGRESS
  2d Session
                                S. 3801

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 SENATE OF THE UNITED STATES

                           February 26, 2024

 Mr. Cruz (for himself, Mr. Hagerty, Mr. Scott of Florida, Mr. Braun, 
Mr. Budd, and Mr. Cramer) introduced the following bill; which was read 
  twice and referred to the Committee on Banking, Housing, and Urban 
                                Affairs

_______________________________________________________________________

                                 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 (12 U.S.C. 411 et seq.) is 
amended by adding at the end the following:
    ``No Federal Reserve bank shall offer products or services directly 
to an individual, maintain an account on behalf of an individual, or 
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 (12 U.S.C. 411 et seq.), as 
amended by section 2 of this Act, is further amended by adding at the 
end the following:
    ``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. The preceding sentence is not to be 
construed to prohibit any dollar-denominated currency that is open, 
permissionless, 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 (12 U.S.C. 241 et seq.) is 
amended by inserting before the twelfth undesignated paragraph the 
following:
    ``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.--
            (1) In general.--Chapter 3 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.''.
            (2) Clerical amendment.--The table of sections for chapter 
        3 of title 31, United States Code, is amended by inserting 
        after the item relating to section 316 the following:

``317. Central bank digital currency.''.

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.
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