The U.S. Senate passed the 21st Century ROAD to Housing Act Monday evening with an 85-5 vote, slipping in a provision that prohibits the Federal Reserve from issuing a central bank digital currency through December 31, 2030. The ban covers the Board of Governors and any Federal Reserve bank, directly or through intermediaries. But it carves out private stablecoins that are 'open, permissionless, and private' dollar-denominated assets — a nod to the industry that's been lobbying hard against a government-run digital dollar.
What the CBDC ban covers
The measure effectively freezes any Fed-led CBDC project for the next four and a half years. It doesn't touch existing private stablecoin issuers, as long as their tokens meet the bill's definition of open and permissionless. That language aligns closely with the GENIUS Act, the first federal stablecoin law signed by President Trump in July 2025, which requires one-to-one reserves, monthly disclosures, and federal licensing for issuers. Together, the two laws create a clear regulatory lane for private digital dollars while keeping the government out of the issuance game — at least until 2031.
Political backdrop
President Trump set the stage in January 2025 with an executive order barring his administration from any CBDC activity, warning it would threaten financial stability, individual privacy, and U.S. sovereignty. New Fed Chair Kevin Warsh has called a U.S. CBDC a 'bad policy choice.' Monday's Senate vote — lopsidedly bipartisan — shows that skepticism runs deep on Capitol Hill too. The housing bill's CBDC rider didn't draw much public debate, but its passage suggests broad consensus that the Fed shouldn't be in the digital currency business anytime soon.
Next stop: House vote
The House is expected to fast-track a vote on the housing bill as early as Tuesday, sending it to President Trump for signature. If it becomes law, the CBDC ban will lock in place until 2030 — but that's not the only crypto legislation in play. The Digital Asset Market Clarity Act, which would determine whether a crypto token is a security or commodity, cleared the Senate Banking Committee 15-9 on May 14 and landed on the Senate Legislative Calendar on June 1. Galaxy Research puts its odds of passing this year at up to 60%, but notes it needs at least seven Democratic votes and must clear the floor before August. Senator Bill Hagerty expressed hope on June 18 that the Clarity Act could get a Senate floor vote 'in the weeks ahead.' The clock is ticking.
