US House Bans Fed from Developing CBDCs for Defense Policies

The US House of Representatives has included a provision in its National Defense Authorization Act (NDAA) for fiscal year 2026 that prohibits the Federal Reserve from pursuing Central Bank Digital Currency (CBDC) development projects. This measure, part of the wider defense policy bill, restricts the Fed’s activities and effectively halts research on state-backed digital currencies. Specifically, it prevents the Fed from offering direct financial services to the public or conducting CBDC studies. Notably, the bill still allows dollar-based currency products and stablecoins as allowable areas for study and development by the central bank.