- The U.S. Senate passed a major housing bill with a provision banning a Federal Reserve-issued central bank digital currency until 2030.
- The measure explicitly exempts private, open, and permissionless stablecoins, protecting issuers like Circle and Tether.
- Both Fed Chair Kevin Warsh and President Donald Trump have publicly opposed a U.S. CBDC, aligning with the legislative action.
- The move positions the U.S. against a global trend where many countries, including China and the European Union, are actively developing CBDCs.
The U.S. Senate overwhelmingly passed the 21st Century ROAD to Housing Act 85-5 on Monday, sending a bipartisan housing package toward a final vote with a crucial digital dollar freeze attached. Tucked inside the bill is a provision explicitly prohibiting the Federal Reserve from issuing a central bank digital currency through the end of 2030.
This measure forbids the Fed from creating a CBDC “directly or indirectly through a financial institution or other intermediary.” However, the language carves out an exemption for private stablecoins, defined as any “dollar-denominated currency that is open, permissionless, and private.” Consequently, established stablecoin issuers governed by last year’s GENIUS Act remain unaffected.
The vote was framed by sponsors as a significant bipartisan achievement on housing. “Housing prices are too darn high and housing supply is too low,” said Banking Committee Chair Tim Scott (R-SC). Meanwhile, there is no active federal effort to build a CBDC, and both Fed Chair Kevin Warsh and President Trump have publicly opposed one.
The CBDC ban served as a political sweetener to secure House Republican support and expedite the package’s passage. Some House conservatives, like Rep. Anna Paulina Luna (R-FL), argue the freeze should be permanent, saying “CBDCs are bad for everyone.” House leaders are expected to take up the bill swiftly, potentially sending it to the President’s desk this week.
This legislative action places the U.S. against prevailing global trends. The European Central Bank is preparing a digital euro for a potential 2029 launch, and China recently expanded cross-border use of its e-CNY, signing up 26 financial institutions. According to the Atlantic Council, three countries have already launched a CBDC with dozens more in development.
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