US House Blocks Fed CBDC in NDAA, Exempts Private Stablecoins
The US House of Representatives has inserted a CBDC ban into the Fiscal Year 2026 National Defense Authorization Act (NDAA). The amendment bars the Federal Reserve from researching, developing, testing or issuing any central bank digital currency (CBDC) or digital dollar. It also prohibits the Fed from offering financial services directly to individuals.
The proposal exempts private stablecoins pegged to the US dollar, signalling Congressional support for private-sector digital currency innovation. Sponsors cite privacy and surveillance concerns, and the potential impact on commercial banks and financial innovation.
The measure follows the narrow passage of the standalone Anti-CBDC Surveillance State Act in the House, which stalled in the Senate. By embedding the CBDC ban in a must-pass defense funding bill, lawmakers aim to secure enactment as the NDAA moves to Senate consideration.
Bullish
The inclusion of a CBDC ban in the NDAA is likely bullish for private stablecoins and the broader crypto market. In the short term, traders may interpret this move as a clear signal that regulatory risks around CBDC development are receding, boosting demand for dollar-pegged stablecoins as a secure on-ramp for crypto trading. Over the long term, Congressional backing for private-sector stablecoins could drive further innovation, adoption and liquidity in digital assets, while mitigating the threat that a Fed-issued digital dollar would undermine commercial banks and traditional stablecoins. However, Senate approval and potential legal challenges remain key variables, so traders should monitor legislative progress closely.