Minnesota Representative Tom Emmer has reintroduced legislation aimed at preventing federal banks from issuing or using central bank digital currencies (CBDCs). This move comes in the wake of an executive order signed by former President Donald Trump, which prohibits the establishment and use of a digital dollar.
Key Takeaways
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Tom Emmer's CBDC Anti-Surveillance State Act aims to ban federal banks from issuing digital currencies.
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The bill was initially proposed in 2022 and passed the House in May 2024.
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Trump's executive order already prohibits the establishment of a U.S. CBDC.
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Emmer claims the legislation is necessary to protect financial privacy.
Background of the CBDC Bill
In a notice released on March 6, 2025, Emmer stated that the reintroduction of the CBDC Anti-Surveillance State Act is crucial for safeguarding Americans' financial privacy. The proposed legislation seeks to amend the Federal Reserve Act to explicitly prohibit federal banks from issuing a digital dollar or any similar digital asset.
Emmer's initial proposal in 2022 gained traction, passing the House in May 2024, but it has since been stalled in the Senate Banking Committee. With the current political landscape, Emmer is rallying support from approximately 100 Republican lawmakers to push the bill forward.
Draft of CBDC Anti-Surveillance State Act: Tom Emmer
Trump's Executive Order
On January 23, 2025, Trump signed an executive order that effectively bans the establishment, issuance, circulation, and use of a U.S. CBDC. Emmer emphasized the importance of codifying this executive order into law to prevent future administrations from potentially weaponizing digital currency technology against American citizens.
"President Trump understands the dangers CBDCs present and has already issued an executive order prohibiting federal agencies from exploring one," Emmer stated.
Current Legislative Climate
Despite the support for Emmer's bill, the future of the legislation remains uncertain. The political dynamics in Congress, particularly with Trump's influence and the ongoing discussions about digital assets, could impact the bill's progress.
On March 7, 2025, Trump, along with key figures in the crypto industry, is set to attend a crypto summit at the White House. This event may provide further insights into the administration's stance on digital currencies and could influence the legislative efforts surrounding CBDCs.
Global Context
While the U.S. government appears to be retreating from CBDC initiatives, other countries are advancing their digital currency projects. For instance, Israel recently unveiled a preliminary design for a digital shekel, and the European Central Bank is exploring the issuance of a digital euro.
As the global landscape for digital currencies evolves, the U.S. legislative approach under Emmer's leadership will be closely watched by both supporters and critics of CBDCs.
Sources
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US lawmaker reintroduces CBDC bill after Trump EO bans digital dollar, PANews.
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US lawmaker reintroduces CBDC bill after Trump EO bans digital dollar, PANews.
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US lawmaker reintroduces CBDC bill after Trump EO bans digital dollar, Cointelegraph.
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New GOP bill aims to end debanking of crypto companies, ‘risky’ industries, PANews.