The US defense bill surprisingly features an "anti-CBDC clause"! The House of Representatives is pushing to prohibit the Federal Reserve from issuing a digital dollar.

The U.S. Congress's annual must-pass "National Defense Authorization Act" (NDAA) has undergone significant changes— the latest version adds a provision for the "Anti-CBDC Surveillance State Act", which explicitly restricts the Federal Reserve (Fed) from directly issuing Central Bank Digital Currency (CBDC) to individuals. This move is seen as a strong counter by the Republican Party against the risks of digital dollar surveillance and could become a turning point in U.S. digital currency policy.

Anti-CBDC provisions included in the defense bill

According to a report by Bloomberg Law, this provision is the same as the independent bill previously proposed by House Majority Whip Tom Emmer. Earlier this summer, the bill passed in the House with 219 votes in favor and 210 votes against, with the core content being a ban on the Federal Reserve (FED) issuing CBDC directly to individuals.

CBDC definition: Central Bank Digital Currency is a digital form of legal tender directly issued and regulated by the national central bank.

Reasons for opposition: Republicans are concerned that CBDC could become a "government-controlled programmable coin," allowing the federal government to monitor citizens' transactions and even restrict politically unpopular activities.

Differences Between the Republican Party and the Democratic Party

Republican Position: Emphasizes protecting financial privacy and preventing the government from using CBDC for mass surveillance.

Democratic Party Position: Criticizes the bill for potentially "stifling" CBDC research and innovation, hindering the competitiveness of the United States in the digital currency field.

The Federal Reserve (FED) Chairman Jerome Powell has also stated that without Congressional approval, there will be no issuance of CBDC.

Legislative Process and Timeline

The National Defense Authorization Act is an annual law that must be passed in the United States to authorize defense budget allocations, covering the funding distribution for the Department of Defense.

According to Punchbowl News report:

Senate: Expected to vote on the bill in Washington on September 2.

House of Representatives: Vote may take place in early September.

Since the NDAA is a "must-pass bill", the inclusion of anti-CBDC provisions significantly increases its chances of becoming law.

Potential Impact on the Digital Asset Market

Digital dollar advancement hindered: If the provisions take effect, The Federal Reserve (FED) will not be able to directly issue CBDC to the public, and the digital dollar project may be delayed or shift to an indirect model (issued through commercial banks).

Benefits of cryptocurrency: Restrictions on CBDC may encourage more market funds to flow into decentralized crypto assets (such as BTC, ETH, USDT, USDC).

Regulatory Framework Shift: The United States' digital currency policy may lean more towards protecting privacy and market freedom rather than a government-led digital payment system.

Conclusion

The inclusion of the "anti-CBDC clause" in the U.S. Defense Authorization Act is not only a direct response from Congress to the risks of monitoring a digital dollar, but it may also reshape the strategic direction of the United States in the global digital currency competition. As the September congressional vote approaches, the fate of this clause will become the focus of attention for the global crypto and financial markets. For more policy and market dynamics, please follow the official Gate platform.