US House Bans Fed from Issuing CBDC in 2026 Defense Bill

The US House of Representatives has embedded a prohibition against Federal Reserve-issued central bank digital currencies within the National Defense Authorization Act for fiscal year 2026. The sweeping restriction bars the Fed from developing, testing, or even studying CBDCs, with narrow exceptions for dollar-pegged stablecoins.

Republican lawmakers spearheaded the measure after delaying crypto legislation debates in July until securing the CBDC ban. Representative Tom Emmer's previously stalled CBDC Anti-Surveillance State Act found new life in this defense bill maneuver, reflecting growing partisan divides over digital currency development.

The policy shift signals mounting political resistance to state-backed digital currencies in Washington, potentially reshaping the trajectory of US cryptocurrency innovation. Market participants now face renewed uncertainty about federal digital asset oversight as legislative battles intensify.