S-1124 : Still Just a Bill

The "Anti-CBDC Surveillance State Act" (S. 1124) aims to limit the Federal Reserve's power regarding digital currency. Key provisions include:

• Prohibition on Direct Services: Federal Reserve Banks cannot offer products or services directly to individuals or maintain accounts for them.
• Central Bank Digital Currency (CBDC) Ban: The Federal Reserve is prohibited from issuing a central bank digital currency directly or indirectly. This includes digital assets that are substantially similar under any other name or label.
• Restrictions on CBDC Activities: The Board of Governors of the Federal Reserve System cannot test, study, develop, create, or implement a CBDC or use it to implement monetary policy.
• Exception: The bill does not prohibit dollar-denominated currency that is open, permissionless, and private, and fully preserves the privacy protections of United States coins and physical currency.
• Sense of Congress: Congress believes that the Federal Reserve lacks the authority to issue a CBDC without explicit authorization from Congress.