The U.S. Senate puts an end to the digital dollar: CBDC banned until 2030
The U.S. legislative body has dealt a devastating blow to the Federal Reserve's ambitions in the realm of digital currencies. As part of the sweeping 21st Century ROAD to Housing Act, the U.S. Senate voted to impose a direct ban on the issuance of a digital dollar (CBDC) until at least December 31, 2030. The decision was passed by an overwhelming majority—85 votes to 5.
Housing Issue as a Cover for Financial Control
At first glance, the connection between housing affordability and a central bank digital currency seems tenuous. However, this is a classic political maneuver: key provisions regarding CBDCs were included in a "must-pass" package of measures aimed at stimulating construction and lowering home prices. It was Republicans in the House of Representatives who insisted on including this clause, arguing that it poses a threat to privacy and risks total government control over citizens' finances.
The law directly prohibits the Board of Governors of the Federal Reserve System and federal reserve banks from creating, issuing, or otherwise putting into circulation any digital assets that are "substantially similar" to a CBDC. An important exception is made for stablecoins: dollar-denominated tokens issued by private entities remain outside the jurisdiction of this ban and do not require additional permits.
Political Context and the Future of the Digital Dollar
The bill is now headed for a final vote in the House of Representatives. An expedited vote is expected to take place immediately after lawmakers return from recess on June 23. The administration of President Donald Trump has already taken an uncompromising stance: Treasury Secretary Scott Bessent previously stated that the topic of CBDCs has been "definitively removed from the agenda." Instead, government efforts are focused on advancing the Clarity Act, which aims to provide a clear definition of the legal status of digital assets, including stablecoins.
Notably, the current administration and Federal Reserve Chairman Kevin Warsh are also categorically opposed to a government-issued digital dollar. This means that even if the ban were not in place, the project would likely have remained stalled. Meanwhile, as the U.S. abandons the idea of a CBDC, other jurisdictions, such as the European Central Bank, are actively preparing for a pilot launch of the digital euro as early as next year.
Cryptalist Analysis: This decision is not merely a temporary pause but a clear political signal. The U.S. is betting on private stablecoins and regulated cryptocurrencies rather than government control through a CBDC. For the market, this is a positive sign: it removes the threat of a "financial Big Brother" and strengthens the position of dollar-denominated tokens as a key bridge between traditional finance and DeFi.