The U.S. Senate voted 85 to 5 on Monday to pass the 21st Century Road to Housing Act, a housing-focused bill that also carries a major digital currency provision: the Federal Reserve would be barred from issuing or creating a central bank digital currency, or CBDC, until December 31, 2030.
Housing bill adds direct limits on a U.S. CBDC
Under the language cited in the report, the Federal Reserve Board and any Federal Reserve Bank would be prohibited from issuing or creating a CBDC either directly or indirectly through financial institutions or other intermediaries. The restriction also extends to any digital asset considered substantially similar. That wording leaves little ambiguity and gives the measure broad reach.
The bill has not become law yet. It still must pass the House and then be sent to President Donald Trump for signature. According to the report, House lawmakers are weighing an accelerated process and could move as early as Tuesday.
No active push for a digital dollar
The political fight has continued even though the Fed has not been actively pursuing a digital dollar. The source notes that launching a U.S. CBDC would in theory require support from the White House, Congress, and the Fed, and so far none of those parties has shown interest in moving it forward.
Republicans have long argued that a CBDC could become a tool for broader government surveillance of financial activity. That concern helped drive the inclusion of the ban in a bill otherwise aimed at the housing affordability crisis. Trump had already signed an executive order in January 2025 barring government efforts tied to CBDC projects, saying such a currency would threaten financial system stability, invade personal privacy, and harm U.S. sovereignty.
Measure runs through the end of 2030
The restriction is not permanent. Its effect would last until the end of 2030, roughly four years under the timeline described in the report. If enacted, it would create a legal block on a U.S. CBDC for a defined period rather than closing the door indefinitely.
That debate in Washington is unfolding while other major jurisdictions continue work on state-backed digital currency plans. The European Central Bank is preparing a digital euro, with a pilot expected next year and a full rollout in 2029. China’s central bank has already been advancing the digital yuan.
Fed leadership has not spoken with one voice
Public comments from Fed leaders have not been uniform. Former Fed Chair Jerome Powell previously said that if the central bank ever considered issuing a CBDC, operations and administration would be handled by private-sector banks. Current Fed Chair Kevin Warsh has taken a much harder line, saying during his confirmation hearing that he fully opposes a U.S. CBDC and calling it a “bad policy choice.”
If the House approves the bill and Trump signs it, the housing legislation would formally impose a temporary legal ban on the Fed moving ahead with a CBDC.