Bill to bar U.S. CBDC introduced in Senate

ICBA-advocated legislation that would restrict the ability of the federal government to introduce a U.S. central bank digital currency was introduced in the Senate after passing the House Financial Services Committee last fall.

Bill Details: The CBDC Anti-Surveillance State Act (S. 3801/H.R. 5403)—introduced in the Senate by Sen. Ted Cruz (R-Texas) and in the House by Majority Whip Tom Emmer (R-Minn.)—would prohibit the Federal Reserve Banks from offering products or services directly to individuals, maintaining individual accounts, or issuing a CBDC to individuals. It also would bar the Fed and the Treasury Department from issuing a CBDC without congressional authorization.

ICBA View: In a national news release following its House committee passage in September, ICBA President and CEO Rebeca Romero Rainey said a U.S. CBDC would disintermediate community banks, reduce credit availability, undermine consumer privacy, threaten the health of the U.S. financial system, and erode the Fed’s ability to conduct monetary policy, among other risks.

Ongoing Advocacy: ICBA has repeatedly expressed opposition to the creation of a U.S. CBDC, including in a letter to the House committee, a written statement for a previous subcommittee hearing, comment letters to the Fed and White House, and an American Banker op-ed.


Previous News

  • Novel bank denied Fed master account

    A novel financial institution that would pass deposits directly into a Federal Reserve master account announced it was denied access to a Fed master account.

    Image

    Feb 27, 2024

  • Global AML watchdog warns of lagging crypto standards

    The Financial Action Task Force—a global anti-money-laundering watchdog—said many countries have not implemented its recommended standards on virtual assets, allowing criminals to exploit gaps in crypto regulation.

    Image

    Feb 26, 2024

  • IG: FDIC human capital challenges affecting exams

    The FDIC Office of the Inspector General said strategic human capital management is the FDIC’s top challenge and is affecting the agency’s ability to conduct exams.

    Image

    Feb 26, 2024


Related News Taxonomy