The U.S. House of Representatives has passed the Anti-CBDC Surveillance State Act, a bill sponsored by Representative Tom Emmer, with the intention of curbing the Federal Reserve's authority over a potential digital dollar. The bill is designed to prevent the Fed from issuing a central bank digital currency (CBDC) directly to individuals or indirectly through intermediaries, thus restricting the Fed from becoming a retail bank with access to citizens' financial data.
Emmer emphasized that the legislation, if enacted, would significantly restrict the Federal Reserve's authority to develop a central bank digital currency (CBDC). He argued that the Fed currently lacks the capacity to emulate physical cash, a requirement he stated must be met for any digital dollar initiative to proceed. The bill proposes amending the Federal Reserve Act to prohibit federal banks from issuing digital assets “substantially similar” to a CBDC.
The Anti-CBDC bill, which received limited Democratic support in the House, aligns with growing concerns over privacy and centralized financial control. Emmer's legislation mandates that any government-issued digital dollar must be “open, permissionless, and private,” reflecting a push to preserve individual financial autonomy. He stated that if a CBDC is not designed to be open, permissionless, and private – resembling cash – a government-issued CBDC is nothing more than an Orwellian surveillance tool that will be used to erode the American way of life.
The bill's passage follows recent Treasury guidance on stablecoins, signaling a strategic alignment between policymakers and private-sector stakeholders wary of regulatory overreach. Critics, however, warn that such restrictions could hinder global efforts to modernize payment systems and weaken the U.S. dollar's role in international trade.
The Anti-CBDC Surveillance State Act defends against the threat of financial surveillance by ensuring that the Fed cannot use any CBDC to implement monetary policy, preventing it from using the technology to manipulate the American economy. It also requires that Congress pass legislation authorizing any government-created digital dollar, safeguarding private sector innovation and any future development of digital cash.
Legislative momentum remains uncertain. Of the three bills passed in July, only the GENIUS Act—regulating stablecoins—has been signed into law by President Donald Trump. The Senate is expected to address the CLARITY Act on market structure and Emmer's CBDC bill after its August recess, though Republican leaders have indicated a prioritization of the CLARITY Act for October passage. Senate Banking Committee Chair Cynthia Lummis has advocated for extended sessions to address Trump's nominations and crypto-related legislative items.
The House of Representatives will be in recess for the month of August, but the Senate still has a week of business to address two crypto bills before breaking.