US House Ties CBDC Ban to 2026 Defense Bill in GOP-Backed Move

The US House has embedded a prohibition on central bank digital currencies within the 2026 National Defense Authorization Act, a strategic maneuver by Republican lawmakers. The legislation explicitly bars the Federal Reserve from issuing, developing, or even researching CBDCs, while carving out an exception for private, dollar-pegged stablecoins that maintain open access and privacy features.

This legislative gambit reflects growing ideological opposition to government-issued digital currencies among conservative factions. By attaching the CBDC ban to must-pass defense spending legislation, proponents have significantly increased the measure's chances of survival through the congressional process.

The move underscores deepening political divisions over the future of money in America, with free-market proponents favoring private cryptocurrency solutions over potential Fed-issued alternatives. Market participants will be watching closely as the defense bill progresses through the Senate, where its CBDC provisions may face tougher scrutiny.