22-8-2025 – The U.S. House of Representatives has approved a provision within the 2026 National Defense Authorization Act (NDAA) that prohibits the Federal Reserve from issuing or studying a central bank digital currency (CBDC), as reported by the House Rules Committee on Thursday.
Embedded in the 1,300-page defense policy bill, the measure explicitly bars the Federal Reserve from developing, testing, or implementing any digital currency or offering financial services directly to individuals, while permitting stablecoins and open, permissionless, private digital currencies. The inclusion of the CBDC ban stems from a July agreement with conservative House Republicans, who had stalled three crypto-related bills until assurances were made to embed the prohibition in the NDAA.
This followed a narrow 219-210 passage of the Anti-CBDC Surveillance State Act in July, a Republican-backed bill reflecting concerns over privacy and government overreach. The NDAA, critical for military funding, often serves as a vehicle for non-defense provisions, increasing the likelihood of the CBDC ban’s passage despite its uncertain fate in the Senate.
The provision aligns with ongoing Republican efforts, including a prior attempt in 2023 led by Representative Tom Emmer, whose CBDC Anti-Surveillance State Act failed to advance. Support for the ban gained momentum after President Donald Trump’s January executive order prohibiting CBDCs, reinforcing the party’s stance against centralized digital currencies. The Senate’s response to the NDAA and its CBDC provision will be critical, as debates over national security funding and attached measures intensify.
