Rep. Tom Emmer Reintroduces Legislation to Ban Federal CBDCs

Minnesota Representative Tom Emmer, the majority whip in the US House of Representatives, has reintroduced legislation aimed at preventing federal

Minnesota Representative Tom Emmer, the majority whip in the US House of Representatives, has brought back legislation that could prevent federal banks from using or issuing central bank digital currencies, or CBDCs.

In a March 6 notice, Rep. Emmer said he had introduced the CBDC Anti-Surveillance State Act in the House for lawmakers in the 119th session of Congress to consider. An earlier version of the bill, which the Minnesota Representative first proposed in 2022, passed the House in May 2024 and had been pending consideration in the Senate Banking Committee.

Draft of CBDC Anti-Surveillance State Act. Source: Tom Emmer

The proposed legislation could amend the Federal Reserve Act to restrict federal banks from issuing a digital dollar “or any digital asset that is substantially similar under any other name or label,” asserting concerns over financial privacy.

However, US President Donald Trump already signed an executive order on Jan. 23 prohibiting “the establishment, issuance, circulation, and use” of a US CBDC or any digital dollar.

“President Trump understands the dangers CBDCs present and has already issued an executive order prohibiting federal agencies from opening a bank to issue a credit tier or digital dollar,” said Rep. Emmer. “Now, we must codify this executive order in law and permanently ban their development so a future administration cannot create and weaponize this technology against Americans.”

Related: Overturned Chevron deference likely won’t impact crypto regulation: Tom Emmer

According to the memo, roughly 100 House Republicans are planning to support the bill. Nonetheless, it remains unclear whether House or Senate lawmakers intend to prioritize specific legislation amid Trump’s attempts to expand his authority through the use of executive orders.

Cointelegraph contacted Rep. Emmer’s office for further comment.

Crypto policies moving forward

On March 7, Trump, crypto and AI czar David Sacks and presidential crypto council director Bo Hines will attend a crypto summit at the White House along with many industry leaders. The US president is expected to announce additional details for his proposed US crypto reserve, but topics like CBDCs and other issues related to digital assets may also be discussed.

While the US government may have no immediate plans for a CBDC, other countries are advancing in their own endeavors. Israel has released a preliminary design for a digital shekel, and the European Central Bank is currently in the preparation phase exploring the issuance of a digital euro.