U.S. House of Representatives has proposed an amendment seeking to include a blanket ban on CBDCs in the National Defense Bill

U.S. Rep. Keith Self (R-Texas) introduced amendments to the National Defense Authorization Act (NDAA) on Tuesday, which aims to prohibit the Federal Reserve from testing, developing, or issuing central bank digital currencies (CBDCs). Whether the amendment can be submitted to a full vote will be decided by the House Rules Committee, which has become a focal point of recent U.S. crypto regulation and digital currency policy.

Self said House Republican leaders had previously promised to include anti-CBDC provisions in the NDAA, but were ultimately completely missing from the 3,086-page text of the bill released on Sunday. “My amendment will amend the bill,” he wrote on social media, criticizing the leadership for “failing on promises.”

The amendment, called “anti-CBDC surveillance state,” explicitly prohibits the Federal Reserve from issuing CBDCs or any similar form of digital assets, and prohibits the Federal Reserve Bank from directly holding accounts or providing financial products on behalf of individuals. The amendment also creates an exception for “public, permissionless, and private dollar-denominated currencies” to preserve cash-like privacy protections.

Republicans who oppose CBDCs worry that central bank digital currencies may give governments excessive money monitoring capabilities and infringe on civil liberties. Several Republican lawmakers, including Representatives Marjorie Taylor Greene and Warren Davidson, have publicly supported Self’s actions, emphasizing that “CBDCs put the government between you and your own money.” Davidson noted that although President Trump has signed an executive order banning federal agencies from issuing CBDCs, Congress still needs to legislate to strengthen the ban.

The dispute stemmed from the Republican leadership’s failure to incorporate previously promised anti-CBDC provisions into the NDAA text, sparking dissatisfaction among hardliners. Self emphasized that the NDAA is a core bill that must be passed by Congress, so the lack of CBDC provisions must be addressed.

Attempts to include a CBDC ban in the bipartisan housing package have also broken down, with some members refusing to accept the restrictions, making the issue a focus of intra-party conflict again, according to sources. As the House prepares to move forward with a bill vote this week, the inclusion of anti-CBDC content will be an important node affecting future digital currency policy in the United States. （Decrypt）