GOP’s Last-Ditch Move: CBDC Ban Quietly Added to Major Crypto Bill

House Republicans have moved to combine a measure banning the Federal Reserve from creating a central bank digital currency (CBDC) with the CLARITY Act, a sweeping bipartisan bill that sets out new rules for cryptocurrency markets.

The House voted yesterday, September 26, on a procedural measure that links the two bills, both of which cleared the chamber in July.

For context, the House voted 215-211 on July 16 to advance the GENIUS stablecoin bill, the Digital Asset Market Clarity Act, and the Anti-CBDC Act after President Trump secured GOP support in a late-night Oval Office meeting.

House Passes Anti-CBDC Act in Party-Line Split

The Anti-CBDC Act, which delivers a direct signal barring the Federal Reserve from creating a retail central bank digital currency, was first introduced by House Majority Whip Tom Emmer.

The bill, however, passed largely along party lines, reflecting Republican concerns that a digital dollar could expand government surveillance of financial transactions.

By contrast, the CLARITY Act, which aims to settle disputes between the SEC and CFTC by clearly defining how digital assets should be classified, whether as securities, commodities, or stablecoins, won broader bipartisan support. 78 Democrats joined Republicans to back the measure.

Meanwhile, committee leaders initially resisted efforts to merge the bills, fearing that doing so would weaken Democratic support for the market structure reforms.

However, pressure from GOP hardliners ultimately pushed leadership to find a way to advance both priorities together. For context, party leaders had earlier tried to include the CBDC ban in the annual National Defense Authorization Act, but that effort faltered as Democrats opposed the measure.

With bipartisan support needed to pass the defense bill in the Senate, the provision is expected to be stripped out during negotiations.

“Passing both the CLARITY Act and the Anti-CBDC bill were key priorities for members of the House,” said Brooke Nethercott, spokesperson for House Financial Services Chair French Hill.

“By combining both measures and sending them to the Senate, the House continues to advance both priorities.”

Crypto Bill Faces Senate Showdown as Odds of Passage Plunge to 35%

Despite the House move, the combined bill faces long odds in the Senate. Lawmakers in the upper chamber are preparing to advance their own legislation spearheaded by Sens. Cynthia Lummis and Kirsten Gillibrand. That proposal aims to establish clear regulatory oversight for digital assets but does not include a CBDC ban.

While the House action points to Republican determination to block a digital dollar, its practical effect remains uncertain. With the Senate charting its own path, the combined House package may serve more as a political statement than a legislative breakthrough.

Thus, the debate over how to regulate cryptocurrency and whether to allow a U.S. central bank digital currency is expected to continue into the next session of Congress.

Specifically, Sen. John Kennedy (R-La.) cast doubt on Senate Banking’s readiness to advance crypto legislation, warning it gives the industry too much sway. His stance clashes with Chairman Tim Scott’s push for a September markup after the House passed the CLARITY Act, exposing GOP divisions that threaten Scott’s deadline.

In a bid to see quick action on the acts, three major crypto lobbying groups, the Blockchain Association, The Digital Chamber, and the Crypto Council for Innovation, earlier urged Congress to pass the bipartisan CLARITY Act.

Despite this, only 35% of Polymarket bettors expect the Digital Asset Market Clarity Act to become law by 2025, down from 87% in July.

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