On May 23, the United States House of Representatives passed Congressman Tom Emmer’s key legislation, H.R. 5403, the CBDC Anti-Surveillance State Act, with a vote of 216 to 192. This bill bars the Federal Reserve from introducing a central bank digital currency (CBDC) in the country.

Emmer argues that allowing the development of a CBDC without congressional oversight could potentially lead to the federal government monitoring and controlling Americans’ spending habits. He emphasized that this bill marks the first legislative effort in the United States against central bank digital currency.

“For the past two Congresses, I’ve worked with my colleagues to update, improve, and grow support for it. This bill halts the efforts of this Administrative State under President Biden from issuing a financial surveillance tool that, if not done correctly, will fundamentally alter the lives of every American,” Emmer added.

The CBDC Anti-Surveillance State Act stipulates that any creation of a digital US dollar must gain explicit approval from Congress. In a post on social media platform X (formerly known as Twitter), a member of the Republican Party asserted that the legislation ensures that the United States’ digital currency policy remains under the control of the American people.

“Whatever is ultimately developed must emulate the core tenets of cash. Simply put: any digital currency issued by the government, again must be open, permissionless, and private,” said Emmer, emphasizing the importance of preventing a CBDC from being used as a tool of oppression.

Emmer cited examples of government overreach and financial surveillance, including the Canadian government’s freezing of bank accounts of protesting truckers in 2022, to underscore the potential risks of adopting CBDCs without robust safeguards.

H.R. 5403 has now passed the House of Representatives and will proceed to the Senate for consideration. The bill has gained substantial support, boasting 165 cosponsors and companion legislation in the Senate. ALEC Action and the American Bankers Association (ABA) have both expressed strong views on the issue, with ALEC Action supporting H.R. 5403 as a means of preventing the United States from adopting CBDCs like China, and the ABA questioning the necessity and benefits of introducing a CBDC in the country.