Top U.S. lawmakers have added a provision banning the Federal Reserve from issuing a central bank digital currency (CBDC) through 2030 to a bipartisan housing package, sharpening Congress’s stance against a government-backed digital dollar.
The updated legislative text, released Tuesday as part of the 21st Century ROAD to Housing Act, would prohibit the Fed from creating a CBDC—or any substantially similar digital asset—until December 31, 2030, while advancing broader housing reform measures aimed at boosting supply and lowering homeownership costs.
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The bill now returns to the Senate for a procedural vote after reconciling differences between the two chambers.
What the CBDC Ban Covers
The CBDC provision, backed by House Republicans, states that the Federal Reserve “may not issue or create a central bank digital currency” or any substantially similar digital asset through the end of 2030.
It carves out an exception for open, permissionless, private dollar-denominated instruments, such as stablecoins, that preserve the privacy protections of physical US currency.
The Senate approved an earlier version of the legislation in a bipartisan 89-10 vote in March, while the House passed an amended version by a 396-13 margin in May. The updated text released Tuesday reconciles differences between the two chambers, paving the way for final consideration.
Last month, U.S. Treasury Secretary Scott Bessent reiterated that a US CBDC remains “off the table,” while emphasizing the administration’s focus on advancing broader digital asset legislation, including the CLARITY Act.
CBDCs Remain a Political Flashpoint
The measure arrives after strong bipartisan momentum in both chambers. The Senate previously passed an earlier version of the bill in an 89–10 vote in March, while the House approved an amended version in May by a wide 396–13 margin.
The latest compromise text reconciles the two versions, clearing the path for final consideration.
CBDCs are digital versions of sovereign currencies issued by central banks. Critics argue they could expand government oversight of financial transactions and raise privacy concerns, while supporters contend they could modernize payment systems and improve financial inclusion.
Why This Matters
The inclusion of a CBDC ban in a major bipartisan bill signals that opposition to a U.S. digital dollar has gained traction across Congress. For the crypto industry, the provision reinforces Washington’s current preference for privately issued digital dollars, including stablecoins, over a government-issued alternative.
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