US Senate Bans Fed CBDC Through 2030 in Housing Bill
The U.S. Senate passed the 21st Century ROAD to Housing Act 85-5 on Monday night, a bipartisan bill aimed at boosting housing supply and restricting large investors from buying single-family homes. Embedded within the bill is a provision that bars the Federal Reserve from issuing a central bank digital currency (CBDC) until the end of 2030. The measure also prohibits the Fed from creating any substantially similar digital asset, either directly or through intermediaries. After the ban expires in 2030, Congress must explicitly authorize any future CBDC. Private stablecoins, such as those issued by Circle and Tether, are exempted. There is no active U.S. CBDC project; Fed Chair Kevin Warsh and President Trump have opposed a digital dollar, and Trump signed an executive order in January 2025 against pursuing one. The ban was added as a political sweetener to win over House Republicans. While some House conservatives prefer a permanent ban, the bill is expected to pass the House quickly. This U.S. stance contrasts with global trends, as the European Central Bank prepares a digital euro and China expands its e-CNY.
Key facts
- Senate passes housing bill 85-5 with CBDC ban provision until 2030
- Fed prohibited from issuing CBDC or similar digital assets directly or indirectly
- Private stablecoins exempted; no active US CBDC project exists
- Ban added as political sweetener for House Republicans
- Contrasts with global CBDC developments in EU and China