The US House of Representatives has inserted a provision in the comprehensive defense bill that will prohibit the Federal Reserve (Fed) from developing future Central Bank Digital Currency (CBDC) projects. The provisions have been made into the National Defense Authorization Act (NDAA) for the next fiscal year, 2026.
The House Rules Committee did certain revisions in HR 3838, the House’s version of the 1300-page defense policy bill, on Wednesday. The changes include prohibiting the Fed from offering financial products or services directly to the public and sweeping ban from studying or creating state-backed digital currencies.
The bill also restricts the central bank from testing, studying, or developing a digital currency, with the exception of dollar-denominated currencies and stablecoins.
Republicans’ Stiff Views Against CBDCs
This step comes after House Republicans delayed debate on several crypto-related bills for over nine hours in July until a CBDC ban was secured in the defense bill. Previously, House Republicans had attempted to pass a CBDC ban in early 2023. House Representative and a member of the Republican party, Tom Emmer introduced the CBDC Anti-Surveillance State Act, but it failed to progress before the end of the previous Congress.
In the current session, Emmer reintroduced the bill, and it has received support from House leaders who argue that it aligns with President Donald Trump’s executive order in January 2025, which effectively prohibited the development of CBDCs.
The House of Representatives passed the standalone CBDC ban bill in July by a narrow margin of 219–210, which is now scheduled to go through the Senate.
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