U.S. House Passes Anti-CBDC Bill Restricting Fed's Digital Dollar Authority

Representative Tom Emmer’s Anti-CBDC Surveillance State Act, introduced in the U.S. House of Representatives in March 2025, seeks to restrict the Federal Reserve’s authority to issue a central bank digital currency (CBDC). The legislation, which passed as part of the House’s “crypto week” agenda in July, mandates that any government-issued digital dollar must be “open, permissionless, and private,” effectively requiring it to emulate physical cash in functionality while limiting the Fed’s ability to create a centralized digital alternative. Emmer, a Republican from Minnesota, argued that the bill would prevent the Fed from replicating traditional currency digitally without explicit legal safeguards, stating, “If [the Fed] could emulate cash, then the law is going to afford them that ability, but right now, they can’t” [1].

The bill’s text proposes amending the Federal Reserve Act to prohibit federal banks from issuing “any digital asset that is substantially similar” to a CBDC. This measure is part of broader efforts to address crypto regulation, alongside legislation targeting stablecoins and digital asset market structures. While the House passed the bill with limited Democratic support, its path in the Senate remains uncertain. The Senate is expected to prioritize the CLARITY Act, which focuses on crypto market structure, over Emmer’s CBDC bill after its August recess. Wyoming Senator Cynthia Lummis, chair of the Senate Banking Committee’s digital assets subcommittee, has emphasized advancing the president’s agenda, including crypto-related nominations, during the August session [1].

The Anti-CBDC bill reflects growing bipartisan concerns about privacy and financial sovereignty in the digital age. Critics argue that a Fed-issued CBDC could enable surveillance and erode trust in decentralized systems. Emmer’s proposal, however, faces challenges in reconciling with existing federal banking frameworks. For instance, the legislation’s requirement for a CBDC to be “open and permissionless” aligns more closely with decentralized blockchain models than the centralized control typically associated with central bank digital currencies. This creates a paradox: the bill aims to block the Fed from issuing a CBDC while simultaneously setting strict conditions for such an issuance, which may complicate implementation [2].

The Senate’s focus on the CLARITY Act suggests that market structure reforms could take precedence over the CBDC bill in the near term. Republican leaders have indicated a target of passing the CLARITY Act before October, potentially sidelining the Anti-CBDC legislation until later in the year. This delay could impact the broader crypto regulatory landscape, as the Senate’s decisions often influence legislative momentum. Meanwhile, the GENIUS Act, which regulates stablecoins, has already been signed into law by President Donald Trump, providing a partial framework for digital asset governance [1].

Analysts note that the Anti-CBDC bill’s success hinges on balancing regulatory clarity with technological feasibility. While the bill’s emphasis on privacy and openness resonates with crypto advocates, its restrictive language may conflict with the Fed’s operational goals. The Federal Reserve has not publicly endorsed the bill, and its stance remains neutral as it continues research into digital dollar alternatives. The legislation’s ambiguity about whether a CBDC must be built on blockchain technology further complicates its practical application, leaving room for legal interpretation [3].

The political dynamics surrounding the bill also highlight the House’s aggressive stance on crypto issues compared to the Senate’s more measured approach. With the House recessing for August and the Senate resuming session on Aug. 3, the next critical juncture for the Anti-CBDC bill will likely occur in September, when Senate leaders reassess their priorities. Until then, the bill’s future remains contingent on bipartisan negotiations and the broader political agenda.

Source:

[1] [Tom Emmer CBDC Bill and Federal Reserve](https://cointelegraph.com/news/tom-emmer-cbdc-bill-federal-reserve)

[2] [Anti-CBDC Bill Seeks to Curb Fed's Digital Dollar Authority](https://www.ainvest.com/news/anti-cbdc-bill-seeks-curb-fed-digital-dollar-authority-2507/)

[3] [BTCUSD - Anti-CBDC bill could curb Fed's power over digital](https://mx.advfn.com/bolsa-de-valores/COIN/BTCUSD/crypto-news/96509937/anti-cbdc-bill-could-curb-fed-s-power-over-digita)