Rep. Keith Self Seeks NDAA Amendment to Ban Federal CBDC Testing
Rep. Keith Self (R-TX) introduced the “Anti-CBDC Surveillance State” amendment on December 9 to reinstate language he says was promised to bar the Federal Reserve and other federal agencies from creating, testing, or operating a US central bank digital currency (CBDC). The amendment followed release of the 3,000‑page National Defense Authorization Act (NDAA) draft that omitted a CBDC prohibition conservatives expected. The NDAA is a must-pass defense funding bill that Republican leadership aimed to advance by December 10, prompting Self to seek the change via amendment. Self’s proposal also explicitly permits “dollar‑denominated currency that is open, permissionless, and private,” protecting privacy-preserving digital cash alternatives and framing CBDC development as a surveillance and civil‑liberties issue. The move reflects broader Republican skepticism toward CBDCs and could constrain federal CBDC progress if adopted or used as leverage in negotiations. Crypto traders should watch the House Financial Services Committee hearing on digital assets, the NDAA floor schedule, and any shifts in bipartisan support—these developments will affect regulatory clarity and may trigger short-term volatility across digital-asset markets. Keywords: CBDC, NDAA amendment, Federal Reserve, digital dollar, privacy, permissionless digital currency.
Neutral
The amendment aims to block Federal Reserve CBDC work and protect permissionless, private digital cash alternatives. For the crypto market this is a neutral development overall. Short term, uncertainty around NDAA negotiations and committee hearings could increase volatility—traders may see price swings on news headlines as regulatory clarity shifts. However, the proposal, if adopted, would likely limit a US CBDC rollout, which many in crypto view as reducing long-term regulatory tail risk and preserving demand for private digital cash and stablecoin alternatives. Conversely, if the amendment fails, momentum toward clearer CBDC policy could increase regulatory pressure, which some traders might interpret as negative. Given the uncertain legislative outcome and that no vote result is reported, the immediate price impact should be limited and reactive to political signals and news flow rather than a fundamental market shift.