The US Senate passed the wide-ranging 21st Century ROAD to Housing Act on Monday night with a resounding 85 to 5 vote. While the bill mainly aims to boost housing supply and curb the dominance of large investors in the single-family home market, it has triggered intense interest in financial circles for including a specific provision: an explicit ban on the Federal Reserve from launching a central bank digital currency (CBDC) until the end of 2030.
FED faces a clear ban through 2030
According to the bill, the FED is prohibited from directly or indirectly issuing a central bank digital currency or any digital asset substantially similar to one, whether through financial intermediaries or other means, until the end of 2030. Even after that date, the FED would need explicit congressional authorization to move forward with any form of digital dollar.
Mini glossary: A central bank digital currency (CBDC) is a digital version of a country’s national currency issued by its central bank. A stablecoin, by contrast, is a privately issued digital asset typically pegged to a fiat currency such as the US dollar.
Stablecoins issued by the private sector are explicitly excluded from the scope of the bill. The legislation clarifies that dollar-pegged, open, permissionless, and privately managed digital currencies—such as those issued by Circle and Tether—will retain the legal status defined under the GENIUS Act passed last year.
During the Senate session, Banking Committee Chair Tim Scott described surging home prices and tight supply as the main drivers of the legislation, presenting the bill as a bipartisan solution to a pressing national problem.
No active digital dollar program in Washington
At present, there is no active federal CBDC initiative in the United States. The FED has never moved beyond the research phase on a digital dollar. Former FED Governor Kevin Warsh and former US President Donald Trump have both publicly rejected the notion of a digital dollar. In January 2025, Trump signed an executive order directing his administration to avoid progress in this area.
Throughout Senate debates, most focus centered on housing supply and the role of institutional investors, relegating the digital dollar ban to a less prominent—but nonetheless politically significant—part of the package.
House vote expected soon
Observers say the digital dollar ban was included to win more Republican support in the House of Representatives and speed up the bill’s passage. The Senate first added this language to the bill in March, passing it 89 to 10. Last week, Senate and House negotiators reached a compromise after months of deliberation, paving the way for a final House vote.
The updated bill is expected to be taken up by the House in the near term, with House leadership aiming for swift action. While some conservative members want the ban to be permanent, not just temporary, passage of the bill would send it to President Donald Trump for final approval.
Elizabeth Warren argued before the vote that the outcome proved bipartisan legislation need not settle for weak compromises, calling the package one of the most significant housing reforms in the past three decades.
A divergence from the global CBDC trend
The US stance on a digital dollar sets it apart from other major economies, many of which are actively advancing CBDC projects. The European Central Bank is moving ahead with preparations for the digital euro, eyeing a pilot program next year and aiming for full deployment in 2029. In China, authorities are rapidly expanding cross-border usage of the digital yuan (e CNY), adding 26 financial institutions to the platform just this month, according to Reuters.
| Region | Approach | Timeline |
|---|---|---|
| US | CBDC ban for the FED | Until end of 2030 |
| Eurozone | Preparing digital euro | Pilot in 2025, launch by 2029 |
| China | Expanding e CNY usage | 26 institutions added this month |
According to the Atlantic Council, only three countries have launched a central bank digital currency so far, while dozens remain at the pilot or development stage. The new US legislation, therefore, positions the US on a markedly different path as the global CBDC landscape continues to evolve.
