Senate passes housing bill banning Fed from issuing CBDC

The US Senate just told the Federal Reserve to shelve any plans for a digital dollar. On June 22, the chamber passed the 21st Century ROAD to Housing Act, a sprawling piece of legislation that addresses housing supply and affordability but also carries a provision that explicitly prohibits the Fed from issuing a central bank digital currency until December 31, 2030.

The vote wasn’t close. The bill passed with overwhelming bipartisan support, reported at either 85-5 or 89-10. The measure is expected to move quickly through the House and land on President Trump’s desk for a signature.

A CBDC ban hiding inside a housing bill

The provision specifically bars the Federal Reserve and its regional banks from issuing a CBDC “or substantially similar digital asset.” No government-backed digital dollar in any form for at least four years.

This isn’t the first time Congress has taken a swing at the idea. The House passed its own version, H.R. 1919, back in July 2025, though that vote was far tighter at 219-210. The Senate’s lopsided margin suggests the anti-CBDC consensus has broadened significantly since then, pulling in substantial Democratic support alongside the Republican base that has championed the cause.

Key figures in the effort include House Majority Whip Tom Emmer, who previously sponsored the Anti-CBDC Surveillance State Act, and Sen. Mike Lee, who proposed the No CBDC Act. Both lawmakers have been vocal about privacy and surveillance concerns tied to a government-issued digital currency.

What was actually at stake

The Fed’s research on CBDCs had not progressed beyond the exploration and study phase. There was no prototype, no pilot program, no timeline for implementation.

President Trump had already moved on this front through executive action. An executive order issued in January 2025 barred federal initiatives toward a CBDC, citing concerns over privacy and financial stability. The Senate bill essentially codifies that executive order into law, which matters because executive orders can be reversed by future presidents. Laws require Congress to undo them.

What this means for crypto investors

The temporary ban creates a clear runway for private-sector digital currencies. Stablecoin issuers like Circle and Tether have been expanding aggressively, and the absence of a government-backed competitor removes a significant overhang that had loomed over their business models.

The four-year sunset clause is worth watching. The ban expires at the end of 2030, which means a future Congress and a future administration could revisit the question. Central banks in other major economies, including the European Central Bank and the People’s Bank of China, continue to develop their own digital currencies.

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