House Committee Moves to Block Federal Reserve's Digital Currency Initiative

The United States House Financial Services Committee has approved the Anti-CBDC Surveillance State Act with a 27–22 vote, aiming to prevent the Federal Reserve from issuing a central bank digital currency . This legislation, introduced by House Majority Whip Tom Emmer , reflects growing concerns over financial surveillance and the potential transformation of the central bank into a retail banking entity.

The bill explicitly prohibits the Federal Reserve from directly offering a CBDC to individuals, thereby ensuring the central bank does not evolve into a retail bank capable of collecting personal financial data from Americans. Additionally, it bars the Fed from indirectly deploying a CBDC through intermediaries and restricts the use of digital currency as a tool for implementing monetary policy. The legislation also mandates that any development of a CBDC by the Federal Reserve requires explicit Congressional authorization.

Emmer has consistently voiced apprehensions regarding the implications of a state-controlled digital currency, emphasizing potential threats to individual privacy and financial autonomy. He argues that a CBDC could be utilized as a surveillance tool, granting the government unprecedented oversight over personal spending habits.

The committee's decision arrives amidst a broader debate on digital asset regulation in Congress. While some lawmakers advocate for stablecoin legislation, others express reservations about CBDCs, fearing they could erode financial freedoms. This legislative move underscores the tension between fostering financial innovation and safeguarding civil liberties.