U.S. Senate advances four-year Fed CBDC ban in housing bill

Traders Union
All News
Crypto
Senate advances Fed CBDC ban

Highlights

U.S. Senate passed the 21st Century ROAD to Housing Act 85-5, attaching a four-year ban on Federal Reserve-issued CBDCs through 2030.
The CBDC restriction becomes law if the House approves the bill and President Donald Trump signs it, following his January 2025 executive order blocking CBDC steps.
Unlike Europe and China, which are advancing digital currencies for 2029 and ongoing pilots, U.S. policy remains stalled by legislative and executive opposition.

Senate vote ties housing package to CBDC restriction

As first reported by CoinDesk, the Senate approved the 21st Century ROAD to Housing Act in an 85-5 vote on Monday, with language that bars the Board of Governors of the Federal Reserve System and regional Federal Reserve banks from issuing or creating a central bank digital currency, directly or indirectly through a financial institution or other intermediary.

The restriction is temporary and runs for four years, through the end of 2030. If the House of Representatives approves the same bill and sends it to President Donald Trump for his signature, the CBDC provision becomes part of U.S. law.

Republican lawmakers have pushed strong opposition to a digital dollar, arguing that it could expand government surveillance. Their position ultimately places the CBDC language into the broader housing legislation despite the issue being unrelated to housing policy.

Policy backdrop and implications for digital currency debate

The Federal Reserve has treated a U.S. CBDC largely as a research subject rather than an active launch project. The concept generally refers to a central bank-issued digital asset, similar in function to a government-backed stablecoin, with other jurisdictions including Europe and China moving further ahead in development.

The European Central Bank is working on a digital euro that is set for a pilot next year and a full launch in 2029, while China has also pursued a digital yuan through the People's Bank of China. In the U.S., former Fed Chair Jerome Powell previously said any possible CBDC framework would have relied on banks for operation and management, while current Fed Chair Kevin Warsh says during his nomination hearing that he fully opposes a U.S. CBDC and calls it a bad policy choice.

Trump already signed an executive order in January 2025 blocking his administration from taking steps toward a CBDC, saying such a system would threaten financial stability, personal privacy and U.S. sovereignty. House lawmakers are reportedly considering an accelerated process to approve the housing bill as soon as Tuesday, which would leave Trump with the final decision on the broader package and its digital currency ban.

Our earlier coverage of the ROAD to Housing Act explained how Congress assembled a bipartisan housing package aimed at boosting supply and improving affordability amid high living costs. It outlined the compromise framework, including limits on large institutional investors in single-family homes, incentives for new construction, and grant provisions tied to local housing expansion and redevelopment of vacant units.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.