Bill to bar U.S. CBDC introduced in Senate

ICBA-advocated legislation that would restrict the ability of the federal government to introduce a U.S. central bank digital currency was introduced in the Senate after passing the House Financial Services Committee last fall.

Bill Details: The CBDC Anti-Surveillance State Act (S. 3801/H.R. 5403)—introduced in the Senate by Sen. Ted Cruz (R-Texas) and in the House by Majority Whip Tom Emmer (R-Minn.)—would prohibit the Federal Reserve Banks from offering products or services directly to individuals, maintaining individual accounts, or issuing a CBDC to individuals. It also would bar the Fed and the Treasury Department from issuing a CBDC without congressional authorization.

ICBA View: In a national news release following its House committee passage in September, ICBA President and CEO Rebeca Romero Rainey said a U.S. CBDC would disintermediate community banks, reduce credit availability, undermine consumer privacy, threaten the health of the U.S. financial system, and erode the Fed’s ability to conduct monetary policy, among other risks.

Ongoing Advocacy: ICBA has repeatedly expressed opposition to the creation of a U.S. CBDC, including in a letter to the House committee, a written statement for a previous subcommittee hearing, comment letters to the Fed and White House, and an American Banker op-ed.