House Introduces Ban on Fed’s Potential Digital Currency

In a significant development impacting the future of digital currencies, the U.S. House of Representatives has included a ban on the Federal Reserve’s (the Fed) potential central bank digital currency (CBDC) in its annual defense policy legislation. The updated version of HR 3838—the House’s draft of the 2026 National Defense Authorization Act (NDAA)—now includes language prohibiting the Fed from creating, testing, or studying a digital currency. This provision also prevents the central bank from offering financial services directly to individuals.