Senate Housing Bill Includes Temporary Ban on U.S. CBDC

A U.S. Senate housing bill now includes a provision that would block the Federal Reserve from issuing a central bank digital currency, or CBDC, until Dec. 31, 2030. The language appears in the Senate substitute amendment to H.R. 6644, known as the “21st Century ROAD to Housing Act.” Lawmakers inserted the CBDC measure as a new section to the Federal Reserve Act. The proposal would prohibit the Fed’s Board of Governors and any Federal Reserve Bank from issuing or creating a U.S. CBDC during the covered period. The bill defines a CBDC as a dollar-denominated digital asset that is treated as U.S. currency, serves as a direct liability of the Federal Reserve System, and is widely available to the general public. Under the text, the restriction applies whether the Fed acts directly or indirectly through a financial institution or other intermediary. What the CBDC Ban Covers The proposed section states that neither the Board of Governors nor any Federal Reserve Bank may issue or create a CBDC or any substantially similar digital asset. The language also bars indirect issuance through third parties, closing potential workarounds that could involve private sector partners. At the same time, the provision includes an exception. It clarifies that the restriction does not apply to dollar-denominated digital assets that are open, permissionless and private, and that fully preserve the privacy protections associated with U.S. coins and physical cash. The measure would expire on Dec. 31, 2030, unless Congress extends or revises it. After that date, the statutory prohibition would no longer apply under the current draft. Legislative Process and Next Steps The Senate advanced the broader housing package on a procedural cloture vote, moving the bill closer to full floor consideration. The strong bipartisan vote signaled support for debating the underlying housing legislation, which now carries the CBDC restriction. Lawmakers previously introduced standalone bills seeking to block a Federal Reserve-issued digital dollar. By embedding the language in a housing package, senators revived that effort within a broader legislative vehicle. The bill must still clear additional procedural steps before final passage. If approved by both chambers and signed into law, the CBDC provision would amend the Federal Reserve Act and take effect according to the timeline outlined in the text.