The House Freedom Caucus is intensifying efforts to ban a U.S. central bank digital currency (CBDC) amid discussions on reauthorizing Section 702 of the Foreign Intelligence Surveillance Act (FISA). Conservative Republicans are demanding a permanent prohibition on a U.S. CBDC as part of the FISA reauthorization, which allows warrantless surveillance on foreign targets. On April 29, House Republicans added a CBDC ban to the FISA bill, but the Senate rejected it the next day, opting for a clean extension without the prohibition. The legislative push centers on Rep. Tom Emmer’s CBDC Anti-Surveillance State Act, aiming to prevent the Federal Reserve from issuing a digital dollar without congressional approval. This marks the third unsuccessful attempt to integrate CBDC legislation into unrelated bills since 2022. Privacy advocates argue that a CBDC could enable government surveillance of financial transactions, raising concerns similar to those about FISA's impact on privacy. The debate has significant implications for the stablecoin market, with analysts suggesting that a CBDC ban could boost demand for private digital assets. This could potentially increase stablecoin transaction volumes by $50 billion annually, as users might prefer decentralized finance options in the absence of a government-issued digital currency.