The U.S. Senate puts an end to the digital dollar: a ban on CBDC until 2030 is embedded in the housing bill
The U.S. legislature has dealt a serious blow to the Federal Reserve's plans to create a central bank digital currency (CBDC). As part of the sweeping housing bill, the 21st Century ROAD to Housing Act, the U.S. Senate voted to impose a direct ban on the issuance of a digital dollar. The vote result — 85 in favor and 5 against — demonstrates rare bipartisan unity on this issue.
A Double Blow: Housing and Financial Privacy
The main bill aims to address the housing crisis by increasing the housing supply and limiting the influence of large corporate landlords. However, a key amendment introduced by House Republicans fundamentally alters the landscape of U.S. digital finance. The document explicitly prohibits the Board of Governors of the Federal Reserve System and federal reserve banks from issuing or creating any CBDC, as well as assets that are "substantially similar" to it. The ban is in effect until December 31, 2030.
A significant exception has been made for stablecoins — private dollar-denominated tokens. They remain outside the scope of the law, highlighting a difference in approach: authorities are blocking government control over digital currency but encouraging private initiatives. House Financial Services Committee Chairman French Hill noted that housing affordability begins with supply, and the bill takes a "significant step" toward building new homes and reducing costs for American families.
Political Context and Global Lag
The current administration of Donald Trump has taken a firm stance against CBDCs. Treasury Secretary Scott Bessent recently confirmed that the digital dollar is "off the table," with government efforts focused on advancing the digital assets bill, the Clarity Act. Federal Reserve Governor Kevin Warsh has also previously spoken out categorically against such an initiative.
Notably, there is currently no active federal project in the U.S. to create a digital dollar. Meanwhile, other countries are moving forward aggressively: the European Central Bank is preparing a pilot for a digital euro as early as next year. This Senate move not only blocks CBDC development in the U.S. for the coming years but also sets a precedent that could slow the global digital currency race.
Cryptalist Analysis: The ban on CBDCs until 2030 is not just a technical delay but a clear signal to the market. Private stablecoins gain an additional window of opportunity to dominate the U.S. digital economy. However, in the long term, such a lag behind global trends could cost the American financial system its leading position, especially amid active pilots in Europe and Asia.