Ted Cruz’s Senate Bill on CBDCs Replicates January House Proposal

The senator’s legislation calls to prohibit the Federal Reserve from issuing a government-backed currency to individuals

article-image

Texas Senator Ted Cruz | Source: Shutterstock

share
  • A direct-to-consumer CBDC could be used as a “financial surveillance tool” by the federal government, according to Cruz
  • Rep. Tom Emmer, R-Minn., introduced a House bill proposing the same objective in January

Sen. Ted Cruz has proposed a bill echoing one introduced in the House in January, in an attempt to maintain the dollar’s dominance without competing with the private sector.

The latest planned legislation, introduced by the Republican senator from Texas, would prohibit the Federal Reserve from issuing a central bank digital currency (CBDC) directly to individuals.

A direct-to-consumer CBDC could be used as a “financial surveillance tool” by the federal government, similar to what is happening in China, according to Cruz.

“The federal government has the ability to encourage and nurture innovation in the cryptocurrency space, or to completely devastate it,” Cruz said in a statement.

“This bill goes a long way in making sure big government doesn’t attempt to centralize and control cryptocurrency so that it can continue to thrive and prosper in the United States.”

CBDCs differ from decentralized currencies such as bitcoin, as they are issued and backed by a government and transact on a centralized permissioned blockchain. 

President Joe Biden signed an executive order earlier this month that calls on a variety of government agencies to study the “responsible development” of digital assets. It also mentions “placing urgency” on the research and potential development of an American CBDC.

Industry watchers previously told Blockworks that though the order is an important step in the policymaking process, concrete legislation could take years.

Rep. Tom Emmer, R-Minn., introduced a House bill that would prevent the Fed from issuing a CBDC to individuals in January.

The Federal Reserve issued a report that month that expressed potential interest in a CBDC that is “identity-verified” but did not take any policy stance. The agency is soliciting public comments through May 20.

“I’m glad Senator Cruz has agreed to offer a Senate companion to my legislation limiting the Fed’s authorities,” Emmer said in a statement. “The Fed must only craft a CBDC framework that is open, permissionless and private — meaning any digital dollar must be accessible to all, transact on a blockchain that is transparent to all and maintain the privacy elements of cash.”


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 24 - 26, 2026

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Unlocked by Template (1).jpg

Research

As AI supercharges surveillance, privacy becomes a prerequisite and the winning stack will combine confidentiality with selective disclosure. Zcash’s Tachyon, composable standards on Ethereum/Solana, and compliance-aware pools aim to make private rails the new norm.

article-image

The deal integrates Dinero’s staking suite into Plume’s real-world asset platform as it gains SEC transfer agent status

by Blockworks /
article-image

The state’s decision opens staking access to New Yorkers, signaling a regulatory shift toward broader crypto participation

by Blockworks /
article-image

The startup says it aims to rival Stripe and Worldpay by using stablecoins to speed merchant settlements from days to seconds

by Blockworks /
article-image

“S&P 500” for crypto comes as segment gains “established role in global markets,” S&P exec says

article-image

The S&P Digital Markets 50 Index combines 15 cryptocurrencies with 35 crypto-linked companies, offering investors hybrid exposure

by Blockworks /
article-image

Gnosis is betting that openness — not ownership — will define the future of onchain money