House Moves Forward on Defense Bill as Self Aims to Halt Fed Digital Dollar

Rep. Keith Self Proposes Amendment to Block a U.S. CBDC in Defense Bill

Rep. Keith Self Files Amendment to Prevent a US CBDC in Defense Bill

Summary: Rep. Keith Self (R-Texas) has introduced an amendment to the annual defense bill aimed at preventing the establishment of a U.S. central bank digital currency (CBDC). This legislative move comes as part of broader negotiations within Congress, with some conservatives expressing frustration over the absence of earlier promises related to CBDC restrictions.

Key Takeaways:

Rep. Keith Self seeks to reinstate anti-CBDC measures in the defense bill.
Conservative voices accuse GOP leaders of not honoring commitments to limit CBDC.
The proposed amendment aims to avert the Federal Reserve from creating a digital dollar while ensuring privacy akin to cash.

Self has stated that Republican leaders had originally assured the inclusion of anti-CBDC language in the legislation, but it was notably absent in the latest version released on Sunday. “Promises were broken to include this language in the NDAA,” he expressed on X. “My amendment would fix the bill.”

House leadership is targeting Wednesday afternoon for the defense package's approval, as reported by Politico, though discussions are ongoing. Self’s proposed “Anti-CBDC Surveillance State” amendment seeks to prevent the Federal Reserve from developing, testing, or issuing any form of a central bank digital currency or similar digital assets under alternate names.

Furthermore, this amendment would restrict Federal Reserve banks from extending accounts or financial services directly to individuals, a step supporters claim is vital for maintaining consumer banking autonomy free of government oversight. There is an exception in the amendment, allowing “dollar-denominated currency that is open, permissionless, and private,” intended to safeguard privacy similar to that of cash transactions.

The full defense bill, known as the annual authorization for Pentagon spending and policy, spans over 3,000 pages and is typically viewed as crucial legislation that Congress must pass each year.

The lack of CBDC provisions has frustrated many conservatives, who perceive this as a departure from earlier commitments. Self articulated his concerns to Fox Business, noting that House Republicans anticipated the inclusion of an amendment authored by Majority Whip Tom Emmer, a prominent critic of CBDCs in Congress. Upon reviewing the bill, Self confirmed that the relevant provision had been omitted.

“We need to pass an NDAA because it’s one of the essential bills we have in Congress,” he stated. “We must amend it and push it through.”

Concerns Over Government Control Through CBDC

The apprehension surrounding CBDCs is shared by several Republicans. Rep. Marjorie Taylor Greene (R-Ga.) conveyed her support for cryptocurrency but expressed her disapproval of any system that could potentially enable the federal government to impose limitations on American usage of their money.

Rep. Warren Davidson (R-Ohio) cautioned that a CBDC would “insert the government between you and your money,” emphasizing the necessity for Congress to enact a legal ban rather than solely depend on executive orders. Earlier this year, former President Trump signed an executive order prohibiting federal agencies from issuing or promoting any CBDC, citing concerns related to privacy and national sovereignty.

Nevertheless, House GOP aides informed The Hill that ongoing negotiations surrounding a bipartisan housing package disrupted efforts to secure a CBDC ban in the defense legislation, stating that the final wording was “not something that would ultimately be acceptable to our members.”