Key Legislation Stalls Anti-CBDC Amendment
Central Bank Digital Currencies (CBDCs) became a focal point in the United States House of Representatives, sparking a significant debate over digital currency policy. Representative Keith Self (R-TX) voiced strong accusations against House leadership, alleging a broken promise to incorporate anti-CBDC language into the National Defense Authorization Act (NDAA).
Representative Self had introduced an amendment titled “Anti-CBDC Surveillance State.” He announced via an X post that his proposal would not be advanced and would not be brought to the House floor for a vote. The reported adjustment aimed to prevent the Federal Reserve from testing or issuing a CBDC, and would have also prohibited any Fed-backed digital asset regardless of its designation.
Self further stated that Conservatives had received assurances that this language would be included in the legislation. He expressed his disappointment, saying, “Instead, we’ve been handed a take-it-or-leave-it bill that breaks that promise. Without it, I’m inclined to leave it.” The amendment also contained explicit provisions to protect “open, permissionless and private” dollar-denominated systems, a measure that resonated with crypto-friendly Republicans who contend that CBDCs pose a threat to financial freedom.
Congress Excludes CBDC Ban from NDAA
The NDAA, a comprehensive 3,086-page package authorizing the upcoming fiscal year's defense budget, has already encountered opposition from hard-line factions concerning Ukraine funding and other omissions. The unexpected absence of a CBDC prohibition has now emerged as a significant point of contention within the party's internal discussions regarding digital currency and government surveillance.
Earlier, in an interview, Self indicated that House leadership had suggested Representative Tom Emmer’s anti-CBDC measure would be part of the final bill. However, upon reviewing the finalized text, he confirmed its exclusion. Other Republican members have echoed these criticisms.
Representative Marjorie Taylor Greene stated her support for cryptocurrency but declared she “will not support any system that lets the government cut off Americans from their own money.” In an X post, she recalled her vote against the GENIUS Act in July, citing its inclusion of a potential backdoor for a CBDC. Greene added that at that time, Speaker Johnson had promised conservatives that he would introduce Tom Emmer’s bill, which would close that loophole.
Representative Warren Davidson cautioned that “CBDC inserts the government between you and your money.” He emphasized that while President Trump’s executive order banning federal agencies from pursuing a CBDC was a positive step, a legislative ban was necessary and had been promised.
In a recent post, Davidson asserted that Congress had reneged on its commitment to ban Central Bank Digital Currency while central banks continue their development efforts. He stressed the urgent need for a CBDC ban.
Historical Stance and Market Context
The Trump administration took swift action to reverse the Biden-era Federal Reserve's limited CBDC research. Notably, one of Trump’s initial crypto-related executive orders in January prohibited federal agencies from developing or promoting a CBDC, citing concerns regarding privacy, sovereignty, and financial stability.
This development occurs as the global cryptocurrency market is experiencing a recovery phase following significant sell-offs. The total cryptocurrency market capitalization has decreased by approximately 2% in the last 24 hours, standing at $3.16 trillion. Bitcoin's price has seen a 12% decline over the past 30 days, with BTC trading at an average price of $93,682 at the time of this report.