A bill advanced by the US Senate would block the Federal Reserve from issuing a central bank digital currency, or any substantially similar digital asset, until the end of 2030. The language goes beyond a temporary pause: even after that date, the Fed would still need explicit authorization from Congress before moving ahead with any version of a digital dollar.
The restriction targets a CBDC, not private stablecoins
The text draws a sharp line between a central bank digital currency and privately issued digital assets. A CBDC is a digital form of sovereign money issued by a central bank. Stablecoins, by contrast, are issued by private companies and are commonly pegged to fiat currencies such as the US dollar. The bill explicitly leaves private-sector stablecoins outside its scope. It says dollar-pegged, open, permissionless, and privately managed digital currencies keep the legal treatment set out under last year’s GENIUS Act, with Circle and Tether cited as examples.
No active federal digital dollar program is currently underway
Washington is not working from an active CBDC rollout plan. The material says the Fed has never moved beyond the research stage on a digital dollar. Former Fed Governor Kevin Warsh and former US President Donald Trump have both publicly opposed the idea. In January 2025, Trump signed an executive order directing his administration to avoid making progress on that front.
During Senate debate, lawmakers spent most of their time on housing supply and the role of institutional investors. That left the digital dollar language in a secondary position inside the broader package, though it still carried clear political weight. Banking Committee Chair Tim Scott said rising home prices and tight supply were the main forces behind the legislation and presented the bill as a bipartisan response to an urgent national issue.
House vote is expected soon after Senate compromise
Observers cited in the source say the CBDC ban was added in part to attract more Republican support in the House and speed the bill’s path forward. The Senate first inserted the language in March and passed it by 89 votes to 10. Last week, Senate and House negotiators reached a compromise after months of talks, clearing the way for a final House vote.
The revised bill is expected to come up in the House in the near term, with House leadership pushing for quick action. Some conservative lawmakers want the ban to become permanent rather than temporary. If the bill passes, it would go to President Donald Trump for final approval. Before the vote, Elizabeth Warren said the outcome showed bipartisan legislation did not need to settle for weak compromises and called the package one of the most significant housing reforms of the past 30 years.
The US stance breaks from the direction taken by other major economies
The American position now stands apart from several large jurisdictions that are actively developing CBDCs. The European Central Bank is preparing the digital euro, with a pilot expected next year and a target for full deployment in 2029. China is expanding cross-border use of the digital yuan as well. Reuters reported that 26 financial institutions were added to the platform this month alone.
Data cited from the Atlantic Council shows that only three countries have formally launched a central bank digital currency so far, while dozens more remain in pilot or development phases. If the US measure becomes law, the country’s position in the global CBDC race will look distinctly different: no official digital dollar issuance process before the end of 2030.