The US House has added a provision that prohibits the Federal Reserve from the release of a Central Bank Digital Currency (CBDC) to a nearly 1,300-page bill that sets the country’s defense policy for the year 2026 fiscal.
An HR 3838 revision, the home version of a bill that implements the National Defense Authorization Act, is shared On Thursday of the House Rules Committee to include the organization of the language that prohibits the federal reserve from studying or creating digital currency.
The house passed a similar The Bill supported by the Republican, the Anti-CBDC Surveillance State Act, in July with a slim vote of 219-210, which now has an uncertain future in the Senate.
The National Defense Authorization Act and related bills are seen as the “must-pass” national security law as they outline how the military can be funded and how to spend it on its budget.
It is typical of lawmakers to add provisions that are not related to the defense that are otherwise avoidable or altered when passed as a bill.
Home leaders have promised CBDC ban on Defense Bill
The Top House Republicans have pledged to include a CBDC ban on the military’s military-passing military spending on a deal with conservative hardliners in July.
A group of Republican Holdouts refused to move three crypto bills forward unless a ban on CBDC was guaranteed to pass, holding a vote to set up a debate on the floor with bills bills for more than nine hoursThe longest in the history of the house.
At this time, the house that passed the CBDC-Banning bill on its own was seen unlikely due to a lack of support. The debate on the bills eventually advanced after House majority leader Steve Scaline said the CBDC ban would be added to the National Defense Authorization Act.
The house later passed the CBDC ban bill on its own a thin margin, which is now facing an uncertain future in the Senate.
Provision will stop fed-annoying digital currency
The provision of the Defense Policy bill will prohibit the Fed from the release of any digital currency or ownership and stop the Central Bank from offering financial or service products directly to individuals.
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It added that the central bank may not be “testing, studying, developing, creating, or implementing” a digital currency or possession, but allowing a carve-out for Stablecoinssaying the bill does not prohibit “any dollar money denomination that is open, without permission, and private.”
A CBDC bill died in previous Congress
House Republicans are looking to ban CBDCs for a few hours.
Party house leaders look to pass a Version of the CBDC-Banning Bill in the last session of Congress.
Similar named Bill, called the CBDC Anti-Surveillance State Act, was introduced by representative Tom Emmer in early 2023, but it did not move forward and died with the last Congress.
Emmer re -introduced a version of the bill to the current Congress, and the Republicans supported the effort to chew on President Donald Trump’s executive order in January which prohibited the CBDCs.
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