II 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘CBDC Anti-Surveil5 lance State Act’’. 


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•S 3801 IS

1 SEC. 2. PROHIBITION ON FEDERAL RESERVE BANKS RE2 LATING TO CERTAIN PRODUCTS OR SERV3 ICES FOR INDIVIDUALS AND PROHIBITION 

4 ON DIRECTLY ISSUING A CENTRAL BANK DIG5 ITAL CURRENCY. 

6 Section 16 of the Federal Reserve Act (12 U.S.C. 411 

7 et seq.) is amended by adding at the end the following: 

8 ‘‘No Federal Reserve bank shall offer products or 

9 services directly to an individual, maintain an account on 

10 behalf of an individual, or issue a central bank digital cur11 rency, or any digital asset that is substantially similar, 

12 under any other name or label, directly to an individual.’’. 

13 SEC. 3. PROHIBITION ON FEDERAL RESERVE BANKS INDI14 RECTLY ISSUING A CENTRAL BANK DIGITAL 

15 CURRENCY. 

16 Section 16 of the Federal Reserve Act (12 U.S.C. 411 

17 et seq.), as amended by section 2 of this Act, is further 

18 amended by adding at the end the following: 

19 ‘‘A Federal Reserve bank shall not offer a central 

20 bank digital currency, or any digital asset that is substan21 tially similar under any other name or label, indirectly to 

22 an individual through a financial institution or other inter23 mediary. The preceding sentence is not to be construed 

24 to prohibit any dollar-denominated currency that is open, 

25 permissionless, private, and fully preserves the privacy 

26 protections of United States coins and physical currency.’’. 


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•S 3801 IS

1 SEC. 4. PROHIBITION ON THE USE OF CENTRAL BANK DIG2 ITAL CURRENCY FOR MONETARY POLICY. 

3 Section 16 of the Federal Reserve Act (12 U.S.C. 241 

4 et seq.) is amended by inserting before the twelfth undes5 ignated paragraph the following: 

6 ‘‘The Board of Governors of the Federal Reserve Sys7 tem and the Federal Open Market Committee shall not 

8 use any central bank digital currency, or any digital asset 

9 that is substantially similar under any other name or label, 

10 to implement monetary policy.’’. 

11 SEC. 5. CENTRAL BANK DIGITAL CURRENCY. 

12 (a) IN GENERAL.—The Federal Reserve Act (12 

13 U.S.C. 221 et seq.) is amended by inserting after section 

14 16 the following: 

15 ‘‘SEC. 16A. CENTRAL BANK DIGITAL CURRENCY. 

16 ‘‘(a) IN GENERAL.—The Board of Governors of the 

17 Federal Reserve System may not, absent Congressional 

18 authorization, issue a central bank digital currency. 

19 ‘‘(b) CENTRAL BANK DIGITAL CURRENCY DE20 FINED.—In this section, the term ‘central bank digital 

21 currency’ means a form of digital money or monetary 

22 value, denominated in the national unit of account, that 

23 is a direct liability of the Federal Reserve System.’’. 

24 (b) TREASURY.— 


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•S 3801 IS

1 (1) IN GENERAL.—Chapter 3 of title 31 of the 

2 United States Code is amended by inserting after 

3 section 316 the following: 

4 ‘‘SEC. 317. CENTRAL BANK DIGITAL CURRENCY. 

5 ‘‘(a) IN GENERAL.—The Secretary of the Treasury 

6 may not, absent Congressional authorization, direct the 

7 Board of Governors of the Federal Reserve System to 

8 issue a central bank digital currency. 

9 ‘‘(b) CENTRAL BANK DIGITAL CURRENCY DE10 FINED.—In this section, the term ‘central bank digital 

11 currency’ means a form of digital money or monetary 

12 value, denominated in the national unit of account, that 

13 is a direct liability of the central bank.’’. 

14 (2) CLERICAL AMENDMENT.—The table of sec15 tions for chapter 3 of title 31, United States Code, 

16 is amended by inserting after the item relating to 

17 section 316 the following: 

‘‘317. Central bank digital currency.’’. 

18 SEC. 6. PROTECTION FOR OPEN, PERMISSIONLESS, AND 

19 PRIVATE CURRENCY. 

20 This Act and the amendments made by this Act shall 

21 not apply to any dollar-denominated currency that is open, 

22 permissionless, and private, and fully preserves the privacy 

23 protections of United States coins and physical currency. 

Æ 


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