TLDR
- The Senate approved the 21st Century Road to Housing Act with an 89-10 vote, incorporating a CBDC prohibition amendment.
- The prohibition prevents the Federal Reserve from launching a central bank digital currency through the end of 2030.
- Private dollar-backed digital assets including stablecoins remain unaffected by the legislation.
- The legislation must still navigate the House of Representatives, where resistance is expected.
- President Trump has indicated he will veto bills until voter-ID legislation passes, creating additional complications.
On Thursday, the United States Senate approved sweeping housing legislation that contains a moratorium on Federal Reserve digital currency issuance.
Known as the 21st Century Road to Housing Act, the legislation secured overwhelming bipartisan support with 89 senators voting in favor and just 10 opposed. Hidden within the final sections of the 302-page document is a provision that prevents the Fed from launching a CBDC or any comparable digital asset through December 31, 2030.
The restriction covers both direct Federal Reserve actions and any attempts to issue digital currency through banking institutions or third-party intermediaries.
Stablecoin projects remain exempt from this prohibition. The bill permits dollar-denominated digital currencies from private entities that maintain open, permissionless, and privacy-focused frameworks.
Treasury Secretary Scott Bessent and [[LINK_START_0]]President Donald Trump[[LINK_END_0]] have publicly endorsed stablecoins as tools to strengthen the US dollar’s international dominance. The Republican Party has maintained firm opposition to government-issued digital currencies.
Why Lawmakers Want a CBDC Ban
Over 30 members of Congress submitted correspondence on March 6 requesting that the Senate make the prohibition permanent instead of temporary. Representative Ralph Norman, among those who signed, expressed concern that a CBDC would grant “unelected bureaucrats unprecedented power over Americans’ finances.”
Prominent hedge fund manager Ray Dalio has similarly cautioned against government digital currencies, citing privacy concerns. “There will be no privacy, and it’s a very effective controlling mechanism by the government,” Dalio stated during a recent media appearance.
Certain legislators have extended their concerns beyond CBDCs to regulated stablecoins. Representative Warren Davidson has contended that the GENIUS Act, designed to establish stablecoin regulations, could enable financial surveillance through programmable currency features.
Digital Chamber CEO Cody Carbone praised the Senate’s decision. “Financial privacy is a cornerstone of American freedom,” Carbone stated, emphasizing that digital innovation in the United States “should be led by the private sector.”
The Road Ahead Is Not Clear
Significant obstacles remain for the legislation. House members have indicated potential opposition to elements of the Senate bill, especially language that would restrict institutional investors like private equity funds from accumulating residential properties.
Trump has declared his intention to veto all legislation until Congress enacts voter identification requirements. This ultimatum introduces additional uncertainty for both the housing bill and other pending measures, including the Digital Asset Market Clarity Act.
The federal government’s CBDC efforts have not progressed beyond exploratory research. Codifying a formal prohibition has remained a priority objective for Republican lawmakers across multiple congressional sessions.
