A U.S. Senate housing bill has revived a restriction on a retail central bank digital currency, placing a formal limit on the Federal Reserve through December 31, 2030. Under the language, the Fed cannot issue a retail CBDC directly or facilitate one through intermediaries, and the measure also covers digital assets deemed “substantially similar”.
Provision appeared minutes before the vote and passed 84–6
According to Eleanor Terrett, the CBDC language was included in the Senate Banking Committee’s 21st Century ROAD to Housing Act only minutes before the vote. The Senate then approved the package by an 84–6 margin. Burgess Everett wrote on X that such a wide split is unusual in Senate voting, yet the CBDC section received limited public attention inside the broader housing bill.
Eleanor Mueller reported that House Republicans asked for the provision during negotiations. Similar language had not made it into last year’s National Defense Authorization Act, despite earlier efforts from House conservatives. This time, the restriction moved through a different legislative vehicle and ended up inside housing legislation.
Fed position is now reinforced by statutory language
The Federal Reserve had already said it would not issue a CBDC without congressional approval. The new text turns that position into a clearer legal restraint. It does more than block a retail digital dollar in name. By extending the ban to “substantially similar” instruments, the bill is written to prevent indirect workarounds through alternate digital structures.
The White House has also signaled support for the measure. Brendan Pedersen reported that the administration praised the CBDC restriction in a public statement, and the president is expected to sign the bill. If signed, the Fed would remain legally blocked from pursuing a retail CBDC initiative before the decade ends, regardless of future policy arguments.
U.S. policy freezes while China and Europe keep moving
As Washington pauses, other jurisdictions continue to work on state-backed digital currency programs. China is still testing and expanding the digital yuan, while Europe is advancing its research through the European Central Bank. The contrast is clear: U.S. federal policy on a retail CBDC is set to remain fixed for years if the bill becomes law.
Inside the U.S., private stablecoins still dominate digital payments. USDC and USDT remain widely used across crypto markets. The report also noted comments from investor Ray Dalio, who said several major economies are still pursuing stronger state control through digital currencies. For now, the U.S. retail digital dollar remains on hold until the end of 2030.