Congress has approved legislation banning the Federal Reserve from issuing a central bank digital currency (CBDC) until the end of 2030. The 21st Century ROAD to Housing Act passed the House 358-32 on Tuesday, following a Senate vote of 85-5 the day prior, and now awaits President Trump's signature.
The ban effectively halts U.S. CBDC development for nearly seven years, a move that crypto advocates have long sought. The bill's rapid passage through both chambers with overwhelming bipartisan support signals strong political consensus against a Fed-issued digital dollar, at least for the near term.
The legislation arrives amid ongoing global CBDC exploration by central banks in China, Europe, and elsewhere. U.S. lawmakers have expressed privacy and surveillance concerns about a digital dollar, with critics arguing that a government-controlled CBDC could enable excessive financial monitoring.
If signed, the ban would prevent the Fed from issuing or piloting a CBDC through 2030, though it does not restrict private-sector stablecoins or other digital dollar alternatives. The market for existing dollar-pegged stablecoins like USDT and USDC could benefit from the lack of direct government competition.
While the bill cleared with veto-proof majorities in both chambers, President Trump has not publicly stated his position on the legislation. Some privacy advocates argue the ban may slow U.S. digital payments innovation, while others see it as a necessary safeguard against government overreach.