The United States Senate has passed the 21st Century Road to Housing Act, introducing a significant new restriction: the Federal Reserve is barred from issuing a central bank digital currency (CBDC), or any analogous digital asset, through December 31, 2030. This decisive measure was included as an amendment within the broader housing policy bill and gained strong bipartisan backing, passing with an 89-10 vote.
Scope Of The Federal Reserve Ban
The new legislation directly blocks the Federal Reserve from deploying any digital dollar or launching similar state-backed digital assets for the next several years. The language also extends the prohibition to prevent the central bank from attempting indirect issuance—through commercial banks or third-party partners—over the same period.
Stablecoins Remain Unaffected
Despite the temporary freeze on CBDCs, the bill does not challenge the legal status of permissionless, privacy-preserving stablecoins. Dollar-backed cryptocurrencies operating on open networks continue to be legal under both current and pending federal law. The latest statements by Treasury Secretary Scott Bessent and President Donald Trump have described stablecoins as tools for enhancing global dollar leadership, with both expressing support for continued development in this area.
Donald Trump, as U.S. President, is an influential figure in current digital currency policy, frequently highlighting the distinction between stablecoins and CBDCs. His official position maintains a clear preference for private-sector innovation while expressing reservations about government-managed digital currencies.
More than 30 Congressional representatives recently petitioned the Senate seeking a permanent CBDC ban. Representative Ralph Norman and other proponents have asserted that introducing a digital dollar could grant untethered oversight and control to federal institutions over citizens’ finances. In a joint letter, these lawmakers described even a temporary moratorium as insufficient.
Objections relating to personal privacy have found backing beyond political circles. Renowned fund manager Ray Dalio has warned about the risks of government-operated digital currencies, particularly regarding the eradication of transactional privacy and the potential for broad financial surveillance.
“There will be no privacy, and it’s a very effective controlling mechanism by the government,” Dalio maintained during a recent public forum.
Legislative caution extends to proposed stablecoin regulations as well. Representative Warren Davidson contended that programmable features embedded in upcoming acts, including the GENIUS Act, could give rise to similar oversight risks. Digital Chamber CEO Cody Carbone welcomed the Senate’s move, describing financial privacy as foundational and advocating for industry-driven advancements.
Carbone argued, “Financial privacy is a cornerstone of American freedom,” asserting that America’s digital currency future “should be led by the private sector.”
Challenges remain before the Act becomes law. The House is expected to contest certain sections, particularly aspects that would limit the scale of residential property acquisitions by institutional investors. Further complicating the outlook, Trump has stated he will not authorize any legislation until Congress passes new voter ID rules, a condition that could delay or derail not only this housing measure but other bills such as the Digital Asset Market Clarity Act.
While Federal Reserve officials have continued preliminary research on possible CBDC frameworks, formal development has not advanced. The prohibition reflected in this new bill addresses a longstanding objective for many Republican policymakers, who have consistently advocated for a clear restriction on digital dollar initiatives.
