GOP Takes on Stablecoin Legislation with CBDC Ban Amendment
Representative Keith Self, a Republican from Texas, has introduced an amendment to the $900 billion U.S. Defense Bill that aims to prevent the Federal Reserve from creating or piloting a central bank digital currency (CBDC). This legislative maneuver, announced on December 9, 2025, is framed by Self as a crucial measure to establish an "Anti-CBDC Surveillance State."
The proposed amendment explicitly forbids the Federal Reserve from engaging in any testing, development, or launching of a U.S. CBDC. Self indicated that previous assurances to include similar anti-CBDC language in the National Defense Authorization Act (NDAA) were not fulfilled in the final compromise text of the bill. He stated, "Promises were broken to include this language in the National Defense Authorization Act (NDAA). My amendment would fix the bill." The House Rules Committee was slated to convene to decide if Self's amendment would proceed to a floor vote.
Background: Trump's Stance and Republican Concerns
During his 2024 presidential campaign, Donald Trump voiced strong opposition to CBDCs, labeling them a "dangerous threat to freedom" and vowing to block the implementation of a Federal Reserve-backed digital dollar. This stance was further solidified in 2025 when Trump signed an executive order directing federal agencies to halt the development and promotion of a U.S. CBDC.
However, Republican lawmakers are seeking to enact a permanent legislative ban, arguing that executive orders can be easily rescinded by future administrations. Self highlighted that conservative members of Congress had received assurances that language opposing CBDCs would be incorporated into the defense authorization bill.
Opponents of CBDCs within the Republican party have frequently raised alarms about the potential for enhanced government surveillance capabilities, drawing parallels to China's digital payment systems. Concerns center on the possibility of federal monitoring of financial transactions and the potential for the government to block payments based on political or social affiliations.
Reports suggest that some Republican lawmakers have threatened to withdraw their support for the defense bill if the amendment in question is denied a floor vote.
Related Legislative Efforts
In July 2025, the House of Representatives passed two related legislative proposals: the CLARITY Act and the Anti-CBDC Surveillance State Act. Neither of these bills has yet been enacted into law. The Anti-CBDC bill specifically aims to permanently prohibit any form of U.S. central bank digital currency. Meanwhile, the CLARITY Act addresses the regulatory oversight responsibilities between the Securities and Exchange Commission and the Commodity Futures Trading Commission concerning cryptocurrency markets. It also includes provisions for consumer protections and proposes regulatory frameworks for decentralized finance and stablecoins.