The US House has incorporated a provision banning the Federal Reserve from issuing a central bank digital currency (CBDC) into a nearly 1,300-page defense policy bill for the 2026 fiscal year. This revision of HR 3838 emerged from House Rules Committee discussions and was previously supported by House Republicans with a narrow vote. The bill, known as the Anti-CBDC Surveillance State Act, aims to prevent the Federal Reserve from studying or establishing a CBDC, despite having encountered challenges in gaining Senate approval. The inclusion of this provision aligns with commitments made by House Republican leaders to hardliners in exchange for advancing three other crypto-related bills. The defense policy bill is crucial for outlining military funding and expenditures, often serving as a vehicle for unrelated legislative measures. By preemptively blocking any potential CBDC developments, House Republicans are reiterating their stance against government-backed digital currencies, following similar efforts that failed in the last Congressional session. This latest provision also allows for an exception for private, open dollar-denominated currencies, while restricting any Fed-led digital currency initiatives.

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