Freedom Caucus Insists on CBDC Ban as Condition for FISA Section 702 Reauthorization

Congress reopens debate this week on reauthorizing Section 702 of the Foreign Intelligence Surveillance Act as both chambers face a mid-June deadline to renew the spy law. Members of the House Freedom Caucus are pledging to hold firm on adding a permanent ban on central bank digital currency to any legislation that reauthorizes the program.

The proposal to add a permanent CBDC ban to the FISA reauthorization faces widespread opposition from Senate Democrats and is viewed as dead on arrival in the upper chamber.

The Trump administration argues that Section 702 is a critical national security tool. It initially sought a clean 18-month extension of Section 702. Rep. " Both the House and Senate approved a 45-day FISA extension in April.

House GOP privacy hawks objected to the 45-day FISA extension because it omitted a CBDC ban. "If the Senate thinks they're going to keep rolling over us, it's just not going to happen," Rep. Chip Roy, R-Texas, said at a news conference in late April.

"CBDC can still make it across the finish line. Let's just push on," Rep. Chip Roy stated. " The group has repeatedly sought to add a CBDC ban to various legislation over the past year but has not yet been able to get a permanent ban on President Donald Trump's desk.

GOP privacy hawks argue that a CBDC ban is a critical privacy guardrail against the Federal Reserve issuing a digital currency that could be used to surveil and potentially cut access to Americans’ financial transactions. A Republican representative stated at a news conference that constituents do not want the government monitoring their bank accounts, telling them what they can buy, when they can buy it and when they're not allowed to buy.