Cease Orwellian Surveillance and Targeting Act of 2023

Bill: 118-hr-5032
Sponsor: full_name: Rep. Ogles, Andrew [R-TN-5]
Introduced: 2023-07-27
Policy area: Finance and Financial Sector
Latest action: action_date: 2023-07-27
text: Referred to the House Committee on Financial Services.

Summaries:
action_date: 2023-07-27
action_desc: Introduced in House
text: <p><strong>Cease Orwellian Surveillance and Targeting Act of 2023 or the COST Act of 2023</strong></p><p>This bill generally prohibits the issuance or ownership of central bank digital currencies. A central bank digital currency is a digital currency issued by a government-backed central bank.</p><p>Under the bill, the Board of Governors of the Federal Reserve System and the Federal Reserve banks are prohibited from minting or issuing a central bank digital currency. In addition, a Federal Reserve bank is prohibited from offering products or services directly to an individual or entity, providing coins or currency directly to an individual or entity, or maintaining an account on behalf of an individual or entity, with some exceptions.</p><p>Further, no person is allowed to hold or own central bank digital currency belonging to the United States or a foreign country. &nbsp;</p>

tv_txt: I 118th CONGRESS 1st Session H. R. 5032 IN THE HOUSE OF REPRESENTATIVES July 27, 2023 Mr. 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 Services A BILL To 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.