IIB 
118TH CONGRESS 
2D SESSION 
H. R. 5403 
IN THE SENATE OF THE UNITED STATES 
JUNE 3, 2024 
Received; read twice and referred to the Committee on Banking, Housing, and 
Urban Affairs 
AN ACT 
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 Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘CBDC Anti-Surveil-
lance State Act’’. 
SEC. 2. PROHIBITION ON FEDERAL RESERVE BANKS RE-
LATING TO CERTAIN PRODUCTS OR SERV-
ICES FOR INDIVIDUALS AND PROHIBITION 
ON DIRECTLY ISSUING A CENTRAL BANK DIG-
ITAL 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 INDI-
RECTLY 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: 
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‘‘(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 finan-
cial 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 DIG-
ITAL 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
POL-
ICY.—The Board of Governors of the Federal Re-
serve System and the Federal Open Market Com-
mittee shall not use any central bank digital cur-
rency, or any digital asset that is substantially simi-
lar under any other name or label, to implement 
monetary policy.’’. 
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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, design, build, develop, establish, or issue a 
central bank digital currency. 
‘‘(b) CENTRAL
BANK
DIGITAL
CURRENCY
DE-
FINED.—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 de-
sign, build, develop, establish, or issue a central bank dig-
ital currency. 
‘‘(b) CENTRAL
BANK
DIGITAL
CURRENCY
DE-
FINED.—In this section, the term ‘central bank digital 
currency’ means a form of digital money or monetary 
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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. 
SEC. 7. SENSE OF CONGRESS. 
It is the sense of Congress that the Board of Gov-
ernors of the Federal Reserve System should not be per-
mitted to develop, create, or implement a central bank dig-
ital currency, or use any such tool to implement monetary 
policy. 
SEC. 8. PROHIBITION ON CENTRAL BANK DIGITAL CUR-
RENCY TESTING. 
Section 16A of the Federal Reserve Act, as added by 
section 5, is amended by adding at the end the following: 
‘‘(C) PROHIBITION
ON CENTRAL BANK DIGITAL 
CURRENCY TESTING.—Unless authorized by an Act of 
Congress enacted after the date of the enactment of this 
Act, the Board of Governors of the Federal Reserve Sys-
tem and the Federal reserve banks may not establish, 
carry out, or approve a program intended to test the prac-
ticability of issuing a central bank digital currency, includ-
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ing by partnering or coordinating with a private sector en-
tity to carry out such a program.’’. 
Passed the House of Representatives May 23, 2024. 
Attest: 
KEVIN F. MCCUMBER, 
Clerk. 
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