?Key takeaways:

• Legislative Progress: The House of Representatives passed the Anti-CBDC Surveillance State Act (H.R. 1919) in July 2025, and it remains a core focus of the 119th Congress in 2026.
• Core Prohibitions: The act explicitly forbids the Federal Reserve from offering retail bank accounts to individuals and from issuing a CBDC directly or indirectly.
• Executive Action: President Trump’s January 2025 Executive Order already halted federal CBDC research, but this legislation aims to make that ban permanent.
• Privacy Focus: The bill’s primary goal is to prevent a "CCP-style" surveillance system where the government can monitor or "deplatform" individual spending.

What is the Anti-CBDC Surveillance State Act?

The Anti-CBDC Surveillance State Act is a landmark piece of legislation designed to protect financial privacy. Introduced by Majority Whip Tom Emmer and supported by 135 co-sponsors, the bill seeks to amend the Federal Reserve Act to ensure that the U.S. government cannot weaponize a digital dollar against its citizens.

1. Prohibition on Retail Banking

Under this act, Federal Reserve banks are prohibited from offering products or services directly to individuals. This ensures the Fed does not become a centralized retail bank, which would compete with and potentially destabilize the private banking sector.

2. Guarding Against "Programmable Money"

One of the most significant concerns addressed by the act is the potential for "programmable money." Unlike Bitcoin, a CBDC could theoretically be programmed with "expiration dates" or restricted so it can only be spent at approved vendors. The bill ensures that any digital version of the dollar must preserve the same privacy protections as physical cash.

3. Congressional Oversight

The act clarifies that the Federal Reserve does not have the authority to issue a CBDC without explicit authorization from Congress. This shifts the power away from unelected bureaucrats and puts it back into the hands of elected representatives.

Pros and Cons of the Anti-CBDC Surveillance State Act

The debate over this bill highlights a fundamental tension between technological progress and civil liberties. Here is a breakdown of the primary arguments: td {white-space:nowrap;border:0.5pt solid #dee0e3;font-size:10pt;font-style:normal;font-weight:normal;vertical-align:middle;word-break:normal;word-wrap:normal;}

Feature	Pros (Arguments For)	Cons (Arguments Against)
Privacy	Prevents the government from seeing every transaction in real-time; stops "deplatforming."	Critics argue it limits the government's ability to track and stop illicit financial flows effectively.
Innovation	Encourages the growth of private stablecoins and decentralized crypto markets.	May cause the U.S. to fall behind other nations (like China or the EU) in digital currency tech.
Stability	Protects commercial banks from "bank runs" where users might flee to a Fed-backed CBDC.	Prevents the Fed from using DLT (Distributed Ledger Tech) to make payments faster and cheaper.
Monetary Policy	Prevents "programmable money" where the government could control how or when you spend.	Limits the government's ability to distribute direct aid (like stimulus) instantly during crises.

Timeline of the Anti-CBDC Surveillance State Act

The journey of this bill reflects the growing tension between government oversight and financial privacy. The following table tracks the legislative path from its inception to its current 2026 status: td {white-space:nowrap;border:0.5pt solid #dee0e3;font-size:10pt;font-style:normal;font-weight:normal;vertical-align:middle;word-break:normal;word-wrap:normal;}

Date	Milestone	Description
January 2022	Initial Introduction	Congressman Tom Emmer (MN-06) introduces the first iteration to the 117th Congress.
March 2025	Reintroduction (H.R. 1919)	Reintroduced in the 119th Congress with 135 co-sponsors; Senator Ted Cruz leads the Senate version (S. 1124).
April 2025	Committee Advancement	The House Financial Services Committee votes 27-22 to advance the bill for a full floor vote.
July 17, 2025	House Passage	The House of Representatives officially passes the bill with a 219-210 vote.
January 2026	Executive Support	The White House issues a statement of "Strong Support," signaling a guaranteed signature upon reaching the President's desk.
March 2026	Current Status	Senate Banking Committee review; lawmakers discuss merging the act into broader bipartisan financial reform packages.

2026 Status Update: Where Does the Bill Stand?

As of March 2026, the legislative push against a "digital spy dollar" has moved into its most critical phase:

• House Victory: H.R. 1919 passed the House with a vote of 219-210.
• Senate Deliberations: The Senate companion bill (S. 1124), led by Senator Ted Cruz, is currently being debated in the Committee on Banking, Housing, and Urban Affairs.
• Budget Attachments: To ensure the protections are enacted quickly, lawmakers have also attached anti-CBDC provisions to the 2026 Department of Defense Appropriations Act (H.R. 4016).
• State-Level Support: Several states, including North Carolina and Louisiana, have already passed state-level bans on the use of a federal CBDC, creating a "bottom-up" pressure on the Senate to act.

Expert Note: While the U.S. is moving to ban CBDCs, over 130 other countries are currently exploring them. This positions the U.S. as a global leader in "Financial Privacy First" digital asset policy.Create your free KuCoin account today to access over 700+ global crypto assets and the latest gems. Sign Up Now!

FAQs

1. Will the Anti-CBDC Surveillance State Act ban stablecoins?

No. The act actually includes an exception for "open, permissionless, and private" digital assets. This means that U.S. dollar-denominated stablecoins issued by private companies are generally protected, as they do not constitute a direct liability of the Federal Reserve.

2. Why is it called a "Surveillance State" act?

Proponents of the bill argue that a CBDC would give the government a "God's eye view" of every transaction made by every citizen. By preventing its creation, the bill aims to stop the potential for financial surveillance and social credit systems.

3. What is the difference between Bitcoin and a CBDC?

Bitcoin is decentralized, permissionless, and has a fixed supply. A CBDC is centralized, controlled by a government, and its supply and usage can be altered at any time by the central bank. The anti cbdc surveillance state actseeks to prevent the latter from becoming the law of the land.

4. Does the President support the bill?

The current administration has expressed strong support for the legislation, consistent with the January 2025 Executive Order that prohibited federal agencies from developing CBDCs.?Further Reading：2026 Clarity Act the Lastest Status and Update2026 Genius Act the Latest Status and Update2026 Bitcoin Act Status and Update2026 Digital Asset Parity Act Status and Update

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