Texas Congressman Files Amendment to Ban Central Bank Digital Currency
In a decisive move ahead of a critical House Rules Committee hearing, Representative Keith Self (R-TX) submitted an amendment on Tuesday to explicitly prohibit a U.S. Central Bank Digital Currency (CBDC) within the National Defense Authorization Act (NDAA). The amendment, titled “Anti-CBDC Surveillance State,” aims to fulfill what Self and other conservatives claim was a broken promise from House leadership to include such a ban in the must-pass defense bill.
Details of the Proposed CBDC Ban
The amendment presents a comprehensive prohibition against the development and implementation of a digital dollar by the Federal Reserve. It seeks to embed a permanent legislative barrier against what many lawmakers view as a threat to financial privacy and individual sovereignty.
Key Provisions of the Amendment
The proposed language would bar the Federal Reserve from “testing, developing, or implementing” a CBDC or any substantially similar digital asset under any other name. It also prevents Federal Reserve banks from offering products directly to individuals or holding accounts on their behalf, a structure seen as a gateway to government overreach.
Protecting Permissionless, Private Currency
Significantly, the amendment carves out an exception for “dollar-denominated currency that is open, permissionless, and private.” This clause is designed to protect the privacy features inherent in physical cash and ensure that private, decentralized cryptocurrencies like Bitcoin are not inadvertently restricted by the legislation.
Political Backdrop and Broken Promises
The push for the amendment stems from a significant rift within the Republican conference. House GOP leaders, including Speaker Mike Johnson, had reportedly assured conservative members that language from Majority Whip Tom Emmer’s anti-CBDC bill would be included in the final NDAA text.
The Omission That Sparked Outcry
When the 3,086-page defense bill was unveiled on Sunday without the promised ban, it triggered immediate backlash. Rep. Self stated to Fox Business that after reviewing the bill, he confirmed the omission, calling the amendment necessary to “fix the bill.” Other prominent Republicans, including Rep. Marjorie Taylor Greene (R-GA) and Rep. Warren Davidson (R-OH), echoed concerns, framing a CBDC as a tool for government surveillance and financial control.
The Road Ahead for the Amendment and CBDC Policy
The fate of Self’s amendment now rests with the House Rules Committee, which will decide whether it advances to a floor vote as part of the NDAA. The broader political context includes President Trump’s January executive order banning federal agencies from promoting CBDCs, which cited risks to financial stability and privacy. However, conservatives argue an executive order is insufficient and a permanent law is required.
A House leadership aide told The Hill that negotiations over the CBDC ban “fell apart” during talks on a separate bipartisan housing package, indicating the complex trade-offs in must-pass legislation. As the House prepares for a potential vote on Wednesday, the amendment represents a critical test for the anti-CBDC movement’s strength in Congress and its ability to translate campaign rhetoric into binding law.
