H.R. 5403, the “CBDC Anti-Surveillance State Act,” would prohibit the Federal Reserve from issuing a central bank digital currency (CBDC) without congressional authorization. It would bar the Fed from offering services directly to individuals or maintaining accounts on their behalf, including through intermediaries. These restrictions would not apply to digital currencies that are “open, permissionless, and private.” The bill would also prohibit the Fed from testing a digital currency without congressional authorization.
The House passed H.R. 5403 on May 23, 2024 by a vote of 216 to 192 (Roll Call 230). We have assigned pluses to the yeas because Article I, Sections 8 and 10 of the Constitution state that only Congress has the power to “coin Money,” referring to precious metals such as gold and silver. Not only do the Federal Reserve and fiat money violate these provisions, but a digital currency can be easily tracked, allowing the government to monitor all financial transactions.
