The US House of Representatives is quickly advancing a ban on central bank digital currencies (CBDCs) by embedding it into a broader digital asset market structure bill. The measure would block the Federal Reserve from creating or distributing a digital dollar before any such system is formally authorized.
The proposal, known as the Anti-CBDC Surveillance State Act and sponsored by House Majority Whip Tom Emmer (R-MN), already cleared the House in July. Lawmakers aim to fold it into the Digital Asset Market Clarity Act, the chamber’s flagship market structure legislation.
The proposal emerged in a draft agenda from the House Rules Committee that seemingly would force the CBDC ban to be included in market structure legislation via an “engrossment.” That is, rather than play out in a standalone law, the ban would find its way into the final version of the market structure bill before it heads to the Senate.
This will speed passage, lawmakers say. The standalone digital dollar legislation faced challenging margins, and packaging it within a broader digital assets package could give senators more ammunition to fend off objections. The bill is designed not only to bring clarity to the respective roles of the Securities and Exchange Commission and the Commodity Futures Trading Commission but also to establish rules about trading, custody, and issuance for digital assets. With the CBDC ban folded in, it now sits squarely at the center of the U.S. crypto regulatory debate — especially in Discord circles.
Lawmakers drive CBDC ban across several bills
The CBDC ban is not just in the market structure bill, with lawmakers opting to push it through the once-a-year defense policy bill, which is commonly referred to as the National Defense Authorization Act (NDAA). The NDAA is one of the must-pass pieces of legislation, establishing the Pentagon’s budget and defense priorities, which means it almost always gets passed by Congress.
By grafting the CBDC ban onto this vehicle, lawmakers are opting for one of the surest pathways to ram through a contentious measure. This tactic also makes it harder for critics to prevent the provision from moving forward; voting against the NDAA would be perceived as standing in the way of military funds and defense planning at a time when tensions are escalating around potential international flash points.
The provision included in the NDAA is unequivocal. It prohibits the Federal Reserve from developing, testing, or offering its own central bank digital currency. This ban is to work retroactively, blocking the startup of a potential future CBDC and any existing pilot programs or research projects. Supporters say the amendment sends a message to Congress against Fed policy in any administration.
Privacy and competition battles heat up
Proponents of the ban claim a CBDC could infringe on personal freedom. They caution that a digital dollar could enable the government to track, monitor, or restrict how citizens spend their money. They see a CBDC ban as a firewall against state surveillance and financial manipulation.
Cynics, however, say that by banning a CBDC outright, the U.S. risks being left behind other major economies. China has already introduced its digital yuan, and the European Union is moving toward a digital euro.
Economists and fintech experts warn that even the lack of an option for a CBDC leaves the U.S. in danger of losing its lead as global financial markets shift to new players.
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