Senate CBDC ban puts Fed digital dollar on ice until 2030

The U.S. Senate passed the 21st Century ROAD to Housing Act in an 85-5 vote on June 22. 

The bipartisan housing bill now moves to the House for final approval before it can reach President Donald Trump’s desk.

The measure focuses on housing supply, permitting, mortgage access, and limits on large investors buying single-family homes. Reuters reported that it would cap large Wall Street firms at 350 single-family homes per firm and expand access to small-dollar mortgages for younger and first-time buyers.

It also carries a temporary ban on a Federal Reserve central bank digital currency, known as a CBDC.

Fed digital dollar faces legal pause

The CBDC language would bar the Federal Reserve Board or any Federal Reserve bank from issuing or creating a central bank digital currency. It would also block a digital asset that is similar to a CBDC, whether issued directly or through a bank or other intermediary.

The restriction would run until Dec. 31, 2030, unless Congress acts again. The provision would turn an executive branch policy into law if the House passes the bill and Trump signs it.

The Fed had not launched a digital dollar project. The idea stayed closer to research than rollout. Still, the Senate vote gives the issue a formal legal path after years of debate over privacy, payments, and the role of central banks.

Republicans cite privacy and control concerns

Trump signed an executive order in January 2025 that barred federal agencies from taking action to establish, issue, or promote a CBDC, unless required by law. The order said CBDCs could threaten “individual privacy” and U.S. sovereignty.

crypto.news earlier reported that Treasury Secretary Scott Bessent said a U.S. CBDC was “off the table” under Trump. He also said the administration wanted digital asset activity to move into the United States under clearer rules.

Republican lawmakers have pushed for a stronger CBDC block. In May, House Republicans wanted to remove the 2030 sunset date and make the ban permanent. Supporters of that position argue a future Fed digital dollar could create new risks around transaction tracking.

Global CBDC work keeps moving

The U.S. position differs from work in other major markets. The European Central Bank said its Governing Council decided in October 2025 to move the digital euro project into its next phase. The ECB describes the digital euro as central bank money in digital form for shops, online payments, and person-to-person use.

China has also continued work on the digital yuan. Reuters reported that China’s digital yuan operation center signed direct participant agreements with 26 financial institutions in Shanghai on June 16. The agreements aim to expand cross-border settlement services tied to e-CNY.

The Senate bill does not ban private stablecoins. As crypto.news reported, the housing deal includes a carveout for dollar-denominated digital currency that is open, permissionless, and private. That language keeps the CBDC freeze focused on Federal Reserve-issued money, not private dollar tokens.

The bill now puts the House in control of the next step. If lawmakers clear the Senate version and Trump signs it, the U.S. will place a four-year legal block on a Fed digital dollar while other central banks continue their own CBDC work.