US Senate Votes to Ban Federal Reserve From Issuing CBDC Until 2030

TLDR

• The US Senate passed the 21st Century Road to Housing Act 89-10, with a CBDC ban amendment attached.
• The ban prohibits the Federal Reserve from issuing a central bank digital currency until December 31, 2030.
• The bill does not block stablecoins or private dollar-denominated digital currencies that are open, permissionless, and private.
• The bill now faces an uncertain path in the House of Representatives, where lawmakers may push back.
• President Trump has said he won’t sign any bills until Congress passes voter-ID legislation, adding further uncertainty.

The US Senate voted on Thursday to pass a major housing bill that includes a temporary ban on the Federal Reserve issuing a central bank digital currency.

The bill, called the 21st Century Road to Housing Act, passed by a wide margin of 89 to 10. Tucked into the final pages of the 302-page bill is an amendment blocking the Fed from issuing a CBDC, or any digital asset “substantially similar” to one, until at least the end of 2030.

The ban applies whether the Fed acts directly or through a financial institution or other intermediary.

The legislation does not affect stablecoins. Private, dollar-denominated digital currencies that are open, permissionless, and private are still allowed under the bill.

Treasury Secretary Scott Bessent and President Donald Trump have both backed stablecoins as a way to extend US dollar influence globally. Trump and Republican lawmakers have consistently opposed CBDCs.

Why Lawmakers Want a CBDC Ban

More than 30 lawmakers signed a letter on March 6 urging the Senate to make the ban permanent rather than temporary. Representative Ralph Norman, one of the signatories, said a CBDC would give “unelected bureaucrats unprecedented power over Americans’ finances.”

Some lawmakers have gone further, warning that even regulated stablecoins could carry surveillance risks. Representative Warren Davidson has argued that the GENIUS Act, which would regulate stablecoins, creates a path to financial surveillance through programmable money.

The Road Ahead Is Not Clear

The bill still faces hurdles. House lawmakers have signaled they may push back on the Senate version, particularly a provision that would limit how many homes large investors, such as private equity firms, can own.

Trump has said he will not sign any legislation until Congress passes a voter-ID law. That condition adds another layer of uncertainty for the housing bill and other legislation in progress, including the Digital Asset Market Clarity Act.

The US government has not moved past the research phase for a CBDC. A formal ban has been a longstanding goal for many Republican lawmakers.

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