Austin News

U.S. Senator Ted Cruz from Texas has introduced the Anti-CBDC Surveillance State Act, a legislative proposal aimed at preventing the Federal Reserve from issuing a central bank digital currency (CBDC). The bill is co-sponsored by Senators Ted Budd, Kevin Cramer, and Thom Tillis.

Senator Cruz emphasized the importance of financial freedom and privacy in his statement: "Cryptocurrency represents financial freedom, innovation, and privacy. A Central Bank Digital Currency (CBDC) would undermine these core values, erode privacy, and stifle innovation."

Senator Cramer expressed concerns about potential government overreach: “A central bank digital currency has the potential for financial monitoring and surveillance and could turn the Federal Reserve into a retail bank. Despite the previous administration’s push for this, Congress should not be circumvented and our bill ensures it!”

Senator Tillis highlighted the importance of protecting financial privacy: “This legislation is a crucial step in protecting Americans’ financial privacy and ensuring that the federal government does not have unchecked power over how we spend our money."

The bill has received endorsements from several organizations including America First Policy Institute, American Bankers Association, Americans for Tax Reform, America's Credit Unions, Bank Policy Institute, Blockchain Association, Center for a Free Economy, Center for Freedom and Prosperity, Club for Growth among others.

David McIntosh of Club for Growth stated that allowing a CBDC would infringe on separation of powers and expose citizens to unconstitutional surveillance. Rob Nichols of American Bankers Association warned that a CBDC could alter citizen relationships with banks while Rebeca Romero Rainey of Independent Community Bankers of America pointed out risks to consumer privacy.

Senator Cruz's history includes efforts to overturn IRS rules affecting digital assets as well as introducing previous legislation against CBDCs since 2022. His actions reflect ongoing advocacy for cryptocurrency within legislative frameworks.