Senate passes housing bill with four-year CBDC ban through 2030
In brief
- Senate approved 21st Century ROAD to Housing Act with 85-5 vote, embedding CBDC ban into law.
- Federal Reserve prohibited from issuing digital dollar directly or through intermediaries until 2030.
- Republican opposition centered on government surveillance and financial system stability concerns.
Legislative Action on CBDC
The housing bill passed with an 85-5 vote and includes explicit language prohibiting the Federal Reserve Board of Governors or Federal Reserve banks from issuing or creating a CBDC or substantially similar digital asset directly or indirectly through a financial institution or intermediary. The measure represents the first formal legislative barrier to a project the Federal Reserve was not actively pursuing.
Republican lawmakers had championed the ban as a safeguard against what they characterized as dangerous government surveillance and financial system overreach. Trump had signed an executive order in January 2025 prohibiting his administration from pursuing CBDC development. The administration framed such a currency as a threat to financial stability, individual privacy, and U.S. sovereignty.
Fed Leadership Alignment
Federal Reserve Chair Kevin Warsh stated during his nomination hearing that he fully opposed a U.S. CBDC, calling it a bad policy choice. Former Fed Chair Jerome Powell had said that even if the Fed considered a CBDC, it would have left operation and management to banks, not retained direct control.
The legislative move follows a pattern of skepticism across the Fed's leadership, though the agency itself had not initiated a CBDC development program. The ban's four-year window leaves room for reconsideration after 2030 if political or technological conditions shift.
Global CBDC Landscape
The U.S. action contrasts with international efforts. The European Central Bank has been working on a digital euro with a pilot program set for next year and a full launch in 2029. China pursued a digital yuan issued by the People's Bank of China, establishing an alternative model for central bank digital assets.
House lawmakers were reportedly contemplating an accelerated process to approve the housing bill by as soon as Tuesday, signaling momentum toward final enactment.
