House Majority Whip Tom Emmer reintroduces Anti-CBDC Surveillance State Act as stocks rally on privacy concerns
1min read House Majority Whip Tom Emmer has reintroduced the Anti-CBDC Surveillance State Act, a legislative effort aimed at preventing the federal government from issuing a central bank digital currency (CBDC). The bill seeks to explicitly prohibit the Federal Reserve from developing, issuing, or implementing a digital dollar, addressing growing concerns over privacy and potential government overreach associated with CBDCs.
The legislation includes provisions that prevent the Federal Reserve from distributing a CBDC either directly to individuals or indirectly through financial intermediaries. It also bars the Fed from using any form of CBDC to influence monetary policy, curtail financial activities, or track individual transactions. Additionally, the bill ensures that the Treasury Department cannot direct the Fed to create a digital dollar, mandating that any future development of a government-controlled digital currency would require explicit congressional approval.
Emmer, a vocal opponent of CBDCs, has highlighted the potential for a government-issued CBDC to function as a financial surveillance tool, thereby undermining the freedoms associated with cash transactions. He has referenced former President Donald Trump’s executive order prohibiting federal agencies from exploring a CBDC, underscoring the need for legislative action to prevent future administrations from reversing course and weaponizing the technology against Americans.
The bill has garnered support from 100 Republican co-sponsors, reflecting a growing conservative opposition to a government-backed digital currency. Critics argue that a CBDC could enable federal agencies to monitor spending habits, freeze assets, or restrict transactions based on political or social considerations. Emmer and other opponents have cited China’s rollout of its digital yuan as an example of how a CBDC could be used to control financial behavior.
On the other hand, supporters of CBDCs, including some policymakers at the Federal Reserve, contend that a digital dollar could enhance payment efficiency, promote financial inclusion, and ensure the US dollar remains competitive in an increasingly digital global economy. Proponents also argue that without a government-issued digital currency, private-sector stablecoins and foreign CBDCs could undermine US financial dominance.
Federal Reserve Chair Jerome Powell has stated that the central bank would not proceed with a digital dollar without congressional approval. However, the Fed has continued to research and evaluate the implications of a CBDC, a process that has fueled skepticism among Republicans. This is not the first time Emmer has sought to block a CBDC; he initially introduced the bill in January 2022 and has 