House Inserts Ban on Fed-Issued CBDC into Must-Pass Defense Bill
The U.S. House has added language to its National Defense Authorization Act (NDAA) package that would bar the Federal Reserve from issuing a central bank digital currency (CBDC) or offering Fed products or accounts directly to individuals. The amendment inserts a prohibition into the defense policy bill that would also prevent the Fed from indirectly issuing a CBDC through intermediaries and would restrict related testing, study, development, or implementation activities.
House leaders pledged to include the ban after conservative holdouts demanded a guaranteed prohibition on a Fed-issued CBDC before allowing related crypto bills to advance. The move followed sustained Republican efforts to make anti‑CBDC language law — most prominently led by House Majority Whip Tom Emmer, who has repeatedly introduced and promoted the Anti‑CBDC (Anti‑Surveillance State) legislation.
The written amendment explicitly blocks Federal Reserve banks from offering products or services directly to individuals, from maintaining individual accounts, and from issuing any central bank digital currency or substantially similar digital asset to individuals. It also forbids indirect issuance through financial institutions, while carving out protections for dollar‑denominated currencies that are “open, permissionless, and private,” language intended to preserve certain stablecoin activity.
Republicans have pressed the issue over concerns about financial surveillance and government control, and the House has previously moved anti‑CBDC measures through the chamber with narrow margins; critics argue broad bans could hinder U.S. innovation and competitiveness in digital payments. The earlier House passage of anti‑CBDC legislation reflected deep partisan divisions over whether and how the U.S. should pursue a central bank digital dollar.
Because the NDAA is considered "must‑pass" funding and policy legislation, lawmakers often attach nondefense provisions to it to ensure their measures receive a vote. Observers say placing a CBDC prohibition inside the defense bill increases the chances the ban could reach the Senate, but its ultimate fate remains uncertain as it moves through the remainder of the congressional process.
If enacted, the provision would legally constrain the Federal Reserve’s ability to research, pilot, or deploy a retail CBDC without explicit Congressional authorization — effectively enshrining into statute limits that proponents say protect financial privacy and opponents say could limit future monetary‑policy tools and payment innovation.
