Anti-CBDC Bill Seeks to Curb Fed’s Digital Dollar Authority

Representative Tom Emmer, the sponsor of the U.S. House’s Anti-CBDC Surveillance State Act, has emphasized that the legislation, if enacted, would significantly restrict the Federal Reserve’s authority to develop a central bank digital currency (CBDC). Introduced in March, the bill is part of a broader legislative package addressing digital assets, including stablecoins and market structure, passed during the House’s “crypto week” in July [1]. Emmer argued on a Friday press call 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 [1].

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 [1]. 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 [1].

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 [1]. Senate Banking Committee Chair Cynthia Lummis has advocated for extended sessions to address Trump’s nominations and crypto-related legislation, but the Senate is currently scheduled to recess on August 3 [1].

The proposed restrictions highlight a pivotal debate over the future of digital finance. While the Fed has emphasized a CBDC’s potential to enhance cross-border payments and combat illicit activity, the Anti-CBDC bill reflects a shift in political priorities toward regulatory restraint. If passed, the legislation could force the Fed to abandon or delay CBDC development, potentially ceding innovation to private-sector solutions or foreign central banks [2]. Emmer’s focus on limiting centralized control underscores tensions between public and private financial models, with industry actors increasingly framing CBDCs as threats to innovation and privacy [2].

The bill’s success hinges on bipartisan support in a divided Congress. With the House and Senate expected to reconvene in September, the outcome will depend on whether lawmakers can reconcile differing visions for digital currency governance. For now, the focus remains on navigating procedural hurdles and securing enough votes to advance the measure [1].

Source: [1] [Anti-CBDC bill could curb Fed’s power over digital dollar, sponsor says] [https://cointelegraph.com/news/tom-emmer-cbdc-bill-federal-reserve]

[2] [News — Dinar Recaps Blog Page] [https://dinarrecaps.com/our-blog/category/News]