U.S. House Blocks CBDC in 2026 NDAA, Shaping Digital Currency’s Future

The U.S. House of Representatives has effectively halted the Federal Reserve's ability to develop a central bank digital currency (CBDC) by embedding a prohibition within the 2026 National Defense Authorization Act (NDAA). This legislative maneuver, advanced by Republicans, reflects growing skepticism toward CBDCs amid concerns over privacy and government overreach.

The NDAA's bipartisan appeal increases the likelihood of the CBDC ban becoming law, as Congress frequently uses the must-pass defense bill to advance contentious policies. The MOVE follows July's narrow passage of the Anti-CBDC Surveillance State Act, signaling hardening opposition to federal digital currency initiatives.

While privacy advocates celebrate the decision, critics warn it may stifle financial innovation as China aggressively pursues its digital yuan. The prohibition could reshape the global race for digital currency dominance, leaving private cryptocurrencies and stablecoins to fill the void in the U.S. financial ecosystem.