House Blocks Federal Reserve’s Digital Currency Initiative

The U.S. House of Representatives has enacted a provision to prohibit the Federal Reserve from issuing its own digital currency. This move, detailed in the National Defense Authorization Act for fiscal year 2026, comes as part of a nearly 1,300-page document outlining national security policy. The revision to HR 3838, the House’s version of the NDAA, includes language preventing the Federal Reserve from studying or creating digital currency. This action follows months of debate and political maneuvering surrounding digital currencies.