US House Bans Federal Reserve CBDC in Defense Bill

The U.S. House of Representatives has embedded a provision banning the Federal Reserve from testing, developing, or implementing a central bank digital currency (CBDC) into the National Defense Authorization Act (NDAA) for the 2026 fiscal year. This amendment, known as the Anti-CBDC Surveillance State Act, explicitly prohibits the Federal Reserve from issuing digital currency directly to individuals, while allowing exceptions for certain private, permissionless stablecoins. The provision reflects strong Republican opposition to CBDCs, citing concerns about government overreach, financial surveillance, disruption to the banking sector, and threats to individual privacy. The move also aligns with President Trump’s executive order earlier in 2025 halting retail CBDC efforts in the U.S. The NDAA, a must-pass defense bill, is being used strategically to bypass Senate resistance and ensure the provision’s passage. Democrats have criticized the ban for potentially stifling innovation and research into digital currencies, highlighting an ongoing ideological debate over the future of money and digital assets in the U.S.