Federal Reserve CBDC Prohibition

Current understanding

Legislative proposals to prohibit the Federal Reserve from issuing, testing, or piloting a central bank digital currency (CBDC), whether directly to individuals or through intermediaries. Status: introduced as part of a broader vehicle bill (Fallen Servicemembers Religious Heritage Restoration Act) that pairs the CBDC ban with FISA Section 702 reauthorization. If enacted, would foreclose a retail or wholesale CBDC pathway in the U.S. and constrain Fed research activity in this space.

Evidence log

• 2025-03-25 — Anti-CBDC Surveillance State Act: Anti-CBDC Surveillance State Act (S1124) introduced as a standalone Senate vehicle to bar Fed issuance, testing, study, or monetary-policy use of a CBDC and to prohibit Reserve Banks from offering accounts or services directly to individuals. (novelty: 3)

Open questions

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