Key Takeaways
The US Senate passed the 21st Century ROAD to Housing Act 85 to 5 on June 22, and tucked inside is a four-year ban on the Federal Reserve issuing a central bank digital currency through the end of 2030.
The provision carves out private stablecoins, exempting open and permissionless dollar tokens and leaving issuers like Circle and Tether, governed by last year's GENIUS Act, untouched.
The bill now heads to the House, which was expected to move quickly, and then to President Trump, who has opposed a digital dollar since a January 2025 executive order.
The US Senate passed a sweeping housing affordability bill on June 22 with a crypto provision riding along, according to Decrypt. The 21st Century ROAD to Housing Act cleared the chamber 85 to 5, and inside it is a four-year ban on the Federal Reserve issuing a central bank digital currency through the end of 2030.
There is no digital dollar to ban yet. The Fed never moved past the research stage, and both Chair Kevin Warsh and President Trump have publicly opposed a CBDC, which critics call a financial-surveillance tool, per CoinDesk. Republicans who championed the measure pushed it into the housing bill anyway, arguing a government-run digital currency could let the state see and control how people spend.
The carve-out is the part the crypto industry will read closely. The ban exempts any dollar token that is open, permissionless, and private, which leaves stablecoin issuers like Circle and Tether, now governed by last year's GENIUS Act, free to operate, per Bitcoin Magazine. Washington is blocking the public version of digital money while it green-lights the private one.
The bill, written by Senate Banking Chair Tim Scott and ranking member Elizabeth Warren, now goes to the House, which was expected to take it up quickly, possibly within days, before it reaches the president. Some House conservatives want the ban made permanent rather than letting it lapse in 2030, and even after it expires the Fed would need explicit approval from Congress to revisit a digital dollar.
The contrast with the rest of the world is sharp. The European Central Bank is preparing a digital euro for a pilot next year and a full launch in 2029, and China keeps expanding its e-CNY. The pattern in Washington is hard to miss, the public dollar frozen while the private one keeps maturing, from regulators deciding which crypto assets are not securities to the largest stablecoin issuer signing up for its first full audit. Worth watching whether the House makes the freeze permanent.
People Also Ask
What is a central bank digital currency (CBDC)?
A digital form of a country's money issued directly by its central bank, in the US the Federal Reserve, that people could hold and spend alongside physical cash.
Did the Senate ban the Fed from issuing a digital dollar?
The Senate passed a housing bill on June 22 that would bar the Federal Reserve from issuing a CBDC through the end of 2030. It still needs House approval and the president's signature.
Does the CBDC ban affect stablecoins like USDC and USDT?
No. The provision carves out private, open, and permissionless dollar tokens, leaving stablecoin issuers governed by the GENIUS Act free to operate.
Why do lawmakers oppose a US CBDC?
Supporters of the ban argue a government-issued digital dollar could enable financial surveillance and give the state too much control over personal spending.