The US House has included a provision in a 1,300-page defense policy bill that prohibits the Federal Reserve from issuing a central bank digital currency (CBDC). This addition is part of the House's version of the National Defense Authorization Act for the 2026 fiscal year, previously known as HR 3838. The anti-CBDC measure was initially passed in July with a narrow vote and is now facing an uncertain future in the Senate. House Republican leaders committed to including a CBDC ban to secure support from conservative members who delayed other crypto bills. The provision not only prevents the Fed from issuing digital currency but also from offering direct financial products or services to individuals. While the bill allows for exceptions for “open, permissionless, and private” dollar-denominated currencies, it represents a continued effort by House Republicans to ban CBDCs, echoing previous legislative attempts that did not progress in prior congressional sessions.

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