Anti-CBDC Bill Advances in Congress

U.S. lawmakers have advanced a bill that would prohibit federal banks from issuing or using a central bank digital currency (CBDC), pushing it one step closer to a vote on the House floor. In an April 2 markup session, the House Financial Services Committee voted 27-22 in favor of the CBDC Anti-Surveillance State Act, sponsored by Representative Tom Emmer. The measure is part of a broader legislative push by Republicans, including a companion bill introduced by Senator Ted Cruz.

What the Bill Proposes

The Anti-CBDC legislation seeks to prevent federal agencies—particularly the Federal Reserve—from developing or implementing a digital dollar. Proponents argue that a CBDC could pose privacy threats, allowing the government to monitor financial transactions. Under the act, federal banking institutions would be barred from deploying a CBDC for consumer use.

Support and Backing

• Bill Sponsor: Representative Tom Emmer (R-MN) touts support from financial groups like the Independent Community Bankers Association and American Bankers Association.
• Past Success: A similar bill narrowly passed in the last Congress by a 216-192 vote.
• Executive Order: Emmer claims the measure codifies an executive order signed by President Donald Trump in January, which forbade the issuance and circulation of a CBDC in the U.S.

Wider Legislative Context

At the same markup hearing, the committee also approved a stablecoin regulation bill, signaling lawmakers’ growing focus on digital currency policy. While stablecoins have gained traction as a payment alternative, the expansion of the federal government’s role in digital payments has sparked concerns over surveillance and financial autonomy.

Political Calculus

Although the anti-CBDC bill has advanced in the House Financial Services Committee, it’s uncertain whether it will garner enough votes to pass both the full House and the Senate. Lawmakers opposing a U.S. digital dollar cite privacy and consumer protection as key issues, echoing arguments from industry leaders who fear government overreach into personal finances.

With the Anti-CBDC Bill advancing in the House Financial Services Committee, the debate around a potential U.S. digital currency intensifies. While supporters view the bill as a safeguard against government surveillance, opponents argue it may stifle innovation in digital payments. The future of the legislation—and, by extension, any U.S. CBDC—remains unclear as it heads toward a full House vote and potential Senate review.