S. 3801 — Introduced in Senate

II 118th CONGRESS 2d Session S. 3801 IN THE SENATE OF THE UNITED STATES February 26, 2024Mr. 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. Short title This Act may be cited as the CBDC Anti-Surveillance State Act. 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. . 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. . 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. . 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: 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: 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. . 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.