During the House of Representatives’ “Crypto Week” from July 14–18, 2025, the Anti-CBDC Surveillance State Act gained significant traction, advancing alongside the GENIUS Act and Clarity Act.
Passed by the House on July 17 with a 217-212 vote, the bill aims to prohibit the Federal Reserve from issuing or testing a central bank digital currency (CBDC) without explicit Congressional approval.
This legislation reflects growing concerns among Republicans, led by House GOP Whip Tom Emmer, about financial privacy and potential government overreach, aligning with President Donald Trump’s January 23, 2025, executive order banning federal agencies from supporting CBDCs.
The Anti-CBDC Surveillance State Act responds to fears that a CBDC could enable government surveillance of financial transactions, drawing comparisons to China’s digital yuan. Supporters, including Rep. Marjorie Taylor Greene, argue that it protects individual autonomy by preventing a “CCP-style surveillance tool.”
The bill’s attachment to the National Defense Authorization Act (NDAA) ensured its passage after initial resistance from 12 House Republicans, who were swayed by GOP leadership’s promise of stronger anti-CBDC provisions in the Clarity Act.
This move underscores the crypto industry’s influence, having spent $250 million in the 2024 elections to back pro-crypto candidates.
The bill’s implications are significant for the U.S. crypto industry, particularly for stablecoins and tokenized assets.
By rejecting CBDCs, the legislation prioritizes private-sector solutions like USDC and USD1, fostering competition among issuers like Circle and World Liberty Financial.
Critics, including Sen. Elizabeth Warren, argue that the bill overlooks the potential of CBDCs to enhance payment efficiency and financial inclusion, citing Europe’s digital euro pilot.
The Atlantic Council notes that the U.S. is an outlier among G7 nations, with 13 countries now testing cross-border CBDC projects like Project mBridge.
The debate highlighted tensions over Trump’s crypto ventures, with Democrats like Rep. Maxine Waters criticizing the bill for enabling “crypto corruption.”
Despite opposition, the bill’s passage strengthens the case for blockchain-based assets, as it removes competition from government-backed digital currencies.
The House Financial Services Committee, chaired by French Hill, played a key role in advancing the bill, reflecting a broader pro-crypto agenda.
