House Republicans Block CBDC Development in Defense Bill

House Republicans have successfully inserted an anti-CBDC provision into the National Defense Authorization Act, effectively prohibiting the Federal Reserve from testing or implementing central bank digital currencies. The amendment carves out exceptions for permissionless, private CBDCs and dollar-denominated currencies preserving physical cash privacy protections.

The move aligns with former President Trump's executive order opposing CBDCs, framed by supporters as a safeguard against government overreach. "A CBDC WOULD give unelected bureaucrats absolute control over your money," declared Congressman Byron Donalds in a tweet celebrating the 219-210 vote.

Republican lawmakers weaponized the must-pass defense legislation, staging a nine-hour blockade until receiving assurances on the CBDC ban. The maneuver comes alongside delayed consideration of three crypto-related bills, including the Digital Asset Market Clarity Act.