The US Congress has introduced a provision in the national security bill for the 2026 fiscal year banning the Federal Reserve from issuing digital currency.
Ban on Digital Currency in National Security Bill
The nearly 1,300-page bill includes a provision that prohibits the Federal Reserve from studying or creating digital currency. This update to bill HR 3838 was released by the House Rules Committee.
Debate on CBDC Ban
Earlier in July, the House passed a similar bill known as the Anti-CBDC Surveillance State Act by a slim vote. House leaders had promised to include a CBDC ban in the military spending bill, which became a critical point for some Republicans who demanded assurance for its passage.
Outcomes and Significance of the Initiative
The provision in the bill would stop the Fed from issuing any digital currency or asset and prevent the central bank from offering financial products directly to individuals. Importantly, the provision allows exceptions for stablecoins.
The inclusion of a CBDC ban in the national security bill reflects lawmakers' efforts to control the future of digital assets in the US.
