On March 26, 2025, Senator Ted Cruz introduced the "Anti-CBDC Surveillance State Act," aiming to prohibit the Federal Reserve from issuing a central bank digital currency (CBDC).

Cruz has a longstanding opposition to CBDCs, having previously introduced similar legislation in 2022 and 2023, and attempted to block Biden administration initiatives in 2024.

His advocacy for cryptocurrency and free markets includes efforts to prevent the Federal Reserve from developing a consumer-facing CBDC.

Rob Nichols from the American Bankers Association expressed that a CBDC would fundamentally change the relationship between citizens and the Federal Reserve, potentially jeopardizing the role of banks in fostering economic growth.

The bill has garnered endorsements from various organizations, including the America First Policy Institute and the American Bankers Association, indicating broad support.

Critics argue that a CBDC could infringe on privacy rights and lead to increased government control over personal finances.

During a congressional hearing, Representative Tom Emmer criticized CBDC technology as "inherently un-American," cautioning against potential government overreach.

Since 2020, the Federal Reserve has been exploring a digital version of the US dollar, with multiple research projects currently underway.

Despite some countries moving forward with CBDCs, including plans for a digital Euro, many in the US, including former President Donald Trump, have voiced strong opposition.

Jerome Powell, the chair of the Federal Reserve, has stated that a CBDC will not be issued while he is in charge, reflecting significant resistance to this financial innovation in the US.

Both Cruz's and Emmer's bills clarify that the prohibition does not extend to dollar-denominated currency that is open, permissionless, and private, thereby preserving existing privacy protections.

Cruz emphasizes that a CBDC would undermine financial freedom, innovation, and privacy, urging for swift legislative action on the proposed bill.