TLDR
- The US House included a CBDC ban in the 2026 National Defense Authorization Act.
- The bill prohibits the Federal Reserve from issuing or developing any central bank digital currency.
- The provision also stops the Fed from offering digital financial services directly to individuals.
- An exception allows dollar-based stablecoins that are open, permissionless, and private.
- Republicans added the CBDC ban after negotiations with conservative members of their party.
The U.S. House has added a central bank digital currency (CBDC) ban to its 2026 defense policy bill. This measure blocks the Federal Reserve from developing, testing, or issuing any CBDC. Lawmakers attached the provision to the must-pass National Defense Authorization Act (NDAA) to secure its passage.
CBDC Restrictions Anchored in Defense Bill
The updated House version of H.R. 3838 contains strict language against central bank-issued digital currency. It forbids the Federal Reserve from issuing any CBDC or offering digital assets to individuals. Moreover, it bars the Fed from conducting any research or testing related to digital currencies.
The bill makes an exception for private stablecoins, noting it does not apply to open, permissionless, dollar-based digital currencies. Lawmakers included the CBDC ban as part of negotiations to win support from conservative Republicans. These provisions mark a significant escalation in efforts to block any future CBDC project.
“Congress must urgently clarify that unelected bureaucrats cannot issue a CBDC,” said Rep. Tom Emmer, a leading sponsor of the provision. He emphasized that a government-controlled CBDC could lead to surveillance risks. By tying the ban to military funding, Republicans ensured a broader chance of passage.
Attaching our Anti-CBDC Surveillance State Act to the NDAA will ensure unelected bureaucrats are NEVER allowed to trade Americans’ financial privacy for a CCP-style surveillance tool. @POTUS has made it clear: our legislation is a key piece of our America First agenda, and we…
— Tom Emmer (@GOPMajorityWhip) July 17, 2025
Political Bargaining Secured CBDC Ban
Top House Republicans pledged in July to add the CBDC ban to the NDAA during talks with conservative holdouts. GOP members had previously stalled crypto legislation until this agreement was secured. The House Rules Committee later introduced the revised NDAA with the anti-CBDC measure included.
The earlier standalone bill, the Anti-CBDC Surveillance State Act, passed narrowly in July but faced uncertain prospects in the Senate. By merging the ban into the defense bill, proponents sidestepped that hurdle. The NDAA’s critical role in national security made it a reliable vehicle for such contested provisions.
House Majority Leader Steve Scalise confirmed the deal, allowing stalled crypto bills to move forward. Debate on those bills had been delayed for over nine hours, setting a House record. This compromise highlights how non-defense priorities can shape key legislation.
Previous CBDC Bills Failed to Advance
Republicans have repeatedly attempted to prohibit a CBDC in recent years. Emmer introduced a similar CBDC ban in the last Congress, which did not advance. In early 2023, he reintroduced the bill, again targeting the Federal Reserve’s digital currency efforts.
The revived version gained stronger backing after President Donald Trump issued an executive order against CBDCs in January. Emmer and allies argue that a CBDC would allow direct government control over personal financial activity. The updated NDAA now carries this broader political stance into law.
With the CBDC ban embedded in the NDAA, future central bank actions will remain limited. The House’s move now puts pressure on the Senate as national security legislation proceeds. Attention will now shift to how the Senate handles the combined bill.
