The U.S. Senate passed legislation prohibiting the Federal Reserve from issuing a digital dollar, delaying any potential CBDC until at least 2031.
The U.S. Senate voted 85-5 to pass the 21st Century ROAD to Housing Act, which includes a provision banning the Federal Reserve from issuing a central bank digital currency (CBDC) until the end of 2030. The measure explicitly bars the Fed from creating or facilitating a digital dollar, either directly or through intermediaries, without congressional approval after the ban expires.
The bill carves out private stablecoins, exempting dollar-denominated, permissionless digital assets like those issued by Circle and Tether. While the Fed has no active CBDC project, Fed Chair Kevin Warsh and former President Trump have publicly opposed a government-run digital currency. The provision’s inclusion in a broader housing bill accelerates its path to becoming law.
The House is expected to vote on the legislation soon, with bipartisan support likely to secure passage. The ban would require explicit congressional authorization for any future Fed CBDC efforts post-2030.