U.S. Senate Moves to Block a Fed Digital Dollar Until End-2030 via Housing Package
WASHINGTON — The U.S. Senate has advanced sweeping housing legislation that includes a notable crypto policy add-on: a prohibition on the Federal Reserve issuing a central bank digital currency (CBDC) through the end of 2030.
The 21st Century ROAD to Housing Act, passed Monday, is positioned as a bipartisan effort to expand housing supply and limit large investors' purchases of single-family homes. Embedded in the bill is language that would bar the Fed from issuing "a central bank digital currency or any digital asset that is substantially similar," whether directly or indirectly through financial institutions or other intermediaries. The text also states that any pursuit of a digital dollar after 2030 would require explicit authorization from Congress.
The provision carves out private stablecoins, which the bill defines as "dollar-denominated currency that is open, permissionless, and private." Issuers such as Circle and Tether are not targeted; the brief notes stablecoins are addressed under last year's GENIUS Act. Market participants say the effect is to take a government-run digital dollar off the table in the near term, leaving the current private stablecoin ecosystem without a new public-sector competitor in digital payments for the next several years.
Senators promoted the overall package as a bipartisan housing win. Banking Committee Chair Tim Scott (R-SC) and Ranking Member Elizabeth Warren (D-MA) jointly authored the bill. Scott cited worsening supply and affordability pressures, while Warren called it the most significant housing legislation in three decades. Senate Minority Leader Chuck Schumer also applauded the effort.
According to the report, the CBDC freeze was added as a political rider aimed at bolstering House Republican support and accelerating final passage. The Senate first approved a version containing the freeze in March (89-10), and negotiators produced a reconciled text last week following months of discussions with the House. Some House conservatives have argued for a permanent ban; Rep. Anna Paulina Luna (R-FL) said CBDCs are "bad for everyone." House leaders are expected to move quickly, potentially taking up the bill as soon as Tuesday, before sending it to the White House.
On the policy backdrop, the report says the Fed has remained in a research phase on a digital dollar. It also cites opposition from Fed Chair Kevin Warsh and President Donald Trump, who signed a January 2025 executive order directing his administration not to pursue a CBDC. In effect, the measure would formalize the absence of a federal CBDC rollout through at least 2030.
The U.S. stance contrasts with global CBDC momentum. The European Central Bank is preparing a digital euro, with a pilot expected next year and a potential launch targeted for 2029. China is expanding cross-border use of its e-CNY and has recently added dozens of financial institutions. The Atlantic Council counts three countries with live CBDCs, with many others in pilot or development stages.
Next catalysts include the House vote and any amendments, followed by potential White House approval. If enacted, the freeze would reshape the near-term U.S. digital currency landscape by protecting private stablecoin activity while leaving the longer-term CBDC question to Congress after 2030.
