← Back to Bills
S. 1124Senate119th Congress (2025-2027)In Committee

A bill to amend the Federal Reserve Act to prohibit the Federal reserve banks from offering certain products or services directly to an individual, to prohibit the use of central bank currency for monetary policy, and for other purposes.

Sponsored by Ted CruzSen. Ted Cruz (R-TX)
Introduced March 25, 2025

AI-Generated Summary

Updated November 24, 2025 at 1:40 AM UTC

The Anti‑CBDC Surveillance State Act amends the Federal Reserve Act to stop the Federal Reserve banks from providing any products or services directly to individuals and from issuing or even indirectly offering a central‑bank digital currency. It also blocks the Board of Governors from researching, creating, or using a CBDC for monetary policy, while allowing a private, open‑source digital dollar that keeps the privacy of physical cash. The bill asserts that the Fed cannot issue a CBDC without explicit congressional approval.

Key Provisions

  • Adds a rule that Federal Reserve banks cannot offer any products or services directly to individuals, keep individual accounts, or issue a central‑bank digital currency (CBDC) or any similar digital asset.
  • Bars Federal Reserve banks from providing a CBDC indirectly through other financial institutions or intermediaries.
  • Prohibits the Federal Reserve Board of Governors from testing, developing, creating, or implementing a CBDC, and from using any CBDC for monetary‑policy actions.
  • Creates an exception that does not apply to a dollar‑denominated, open‑source, permissionless, private digital currency that preserves the privacy of U.S. coins and cash.
  • Includes a sense‑of‑Congress statement that the Federal Reserve lacks authority to issue a CBDC unless Congress explicitly grants it.

Legislative Activity

Stay on top of the latest movement without scrolling through every action

1 earlier action
SenateIntro Referral Latest Action

Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Banking, Housing, and Urban Affairs Committee

March 25, 2025

View full timeline
SenateIntro Referral

Introduced in Senate

March 25, 2025

SenateIntro Referral

Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Banking, Housing, and Urban Affairs Committee

March 25, 2025

Bill Text

Latest available legislative text

Reading Mode
Latest
Raw Text PDF XML
Introduced in SenateIssued March 25, 2025

II

119th CONGRESS

1st Session

S. 1124

IN THE SENATE OF THE UNITED STATES

March 25, 2025

Mr. Cruz (for himself, Mr. Budd, Mr. Cramer, and Mr. Tillis) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs

A BILL

To amend the Federal Reserve Act to prohibit the Federal reserve banks from offering certain products or services directly to an individual, to prohibit the use of central bank digital currency for monetary policy, and for other purposes.

1.

Short title

This Act may be cited as the Anti-CBDC Surveillance State Act.

2.

Prohibition on Federal reserve banks relating to certain products or services for individuals and prohibition on directly issuing a central bank digital currency

Section 16 of the Federal Reserve Act (12 U.S.C. 411 et seq.) is amended by adding at the end the following:

A Federal reserve bank may not—

(1)

offer products or services directly to an individual;

(2)

maintain an account on behalf of an individual; or

(3)

issue a central bank digital currency, as defined in section 10(11)(D), or any digital asset that is substantially similar under any other name or label.

.

3.

Prohibition on Federal reserve banks indirectly issuing a central bank digital currency

Section 16 of the Federal Reserve Act (12 U.S.C. 411 et seq.), as amended by section 2, is further amended by adding at the end the following:

A Federal reserve bank may not offer a central bank digital currency, as defined in section 10(11)(D), or any digital asset that is substantially similar under any other name or label, indirectly to an individual through a financial institution or other intermediary.

.

4.

Prohibition with respect to central bank digital currency

Section 10 of the Federal Reserve Act (12 U.S.C. 241 et seq.) is amended by inserting before paragraph (12) the following:

(11)

Prohibition with respect to central bank digital currency

(A)

In general

The Board of Governors of the Federal Reserve System may not test, study, develop, create, or implement a central bank digital currency, or any digital asset that is substantially similar under any other name or label.

(B)

Monetary policy

The Board of Governors of the Federal Reserve System and the Federal Open Market Committee may not use a central bank digital currency to implement monetary policy, or any digital asset that is substantially similar under any other name or label.

(C)

Exception

Subparagraph (A) and the eighteenth and nineteenth undesignated paragraphs of section 16 may not be construed to prohibit any dollar-denominated currency that is open, permissionless, and private, and fully preserves the privacy protections of United States coins and physical currency.

(D)

Central bank digital currency defined

In this paragraph, the term central bank digital currency means a form of digital money or monetary value that is—

(i)

denominated in the national unit of account;

(ii)

a direct liability of the Federal Reserve System; and

(iii)

widely available to the general public.

.

5.

Sense of Congress

It is the sense of Congress that the Board of Governors of the Federal Reserve does not have the authority to issue a central bank digital currency, or any digital asset that is substantially similar under any other name or label, and will not have such authority unless Congress grants such authority pursuant to section 8 of article I of the Constitution of the United States.