CBDC Anti-Surveillance State Act

The bill now amends Section 16 of the Federal Reserve Act instead of Section 13, changing which part of the law is being modified. The monetary policy prohibition was also moved from Section 10 to Section 16.

New Section 6 provides a blanket exemption: the Act does 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.

New Section 5 adds a new Section 16A to the Federal Reserve Act prohibiting the Board of Governors from designing, building, developing, establishing, or issuing a CBDC absent Congressional authorization, and adds a new Section 317 to Title 31 prohibiting the Treasury Secretary from directing the Fed to issue a CBDC.

The bill now formally defines 'central bank digital currency' as 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 (or central bank, in the Treasury provision).

New Section 8 prohibits the Board of Governors and Federal Reserve banks from establishing, carrying out, or approving any program to test the practicability of issuing a CBDC, including partnerships with private sector entities, unless authorized by a subsequent Act of Congress.

New Section 7 adds a non-binding 'sense of Congress' statement that the Fed should not develop or implement a CBDC or use it for monetary policy.