The US House cleared a sweeping housing package this week, sending legislation that bans the Federal Reserve from issuing a retail central bank digital currency (CBDC) through Dec. 31, 2030 to President Trump's desk. The Senate passed the bill 85-5 on June 22, folding a long-sought digital-dollar prohibition into broader housing policy. Supporters frame the ban as a guardrail against government surveillance of personal spending, codifying the stance Trump took in an executive order signed in January 2025 that opposed CBDC development and cited risks to financial privacy.
House Passes Housing Bill With Fed CBDC Ban Through 2030
The House gave final approval to the housing measure, clearing the way for one of the crypto industry's most-watched policy wins in years. The legislation blocks the Federal Reserve from issuing a retail digital dollar until the end of 2030, unless Congress acts to extend the restriction. The bill's language states: "[The central bank] may not issue or create a central bank digital currency...directly or indirectly through a financial institution or other intermediary."
The provision arrived in the Senate's version of the package, which lawmakers passed in an 85-5 vote on June 22. The House had earlier advanced its own housing legislation by a 396-13 margin, and this week's vote aligned the chamber with the Senate text, sending the combined bill to the White House. The Fed has studied a digital dollar through research papers and a Boston pilot program, but no retail CBDC was close to deployment.
Legislation Codifies Trump January 2025 Executive Order
The ban writes into law the stance Trump took in January 2025, when he signed an executive order opposing CBDC development and citing risks to financial privacy. By codifying that position, Congress makes it harder for a future administration to revive a digital-dollar project without passing new legislation. Critics of central bank digital currencies argue that a state-run digital dollar could let authorities monitor or restrict how citizens transact, while proponents have pitched it as a modernization of public money.
Bill Exempts Private Stablecoins From CBDC Prohibition
The legislation carves out private, dollar-denominated digital assets, including stablecoins, provided they preserve privacy comparable to physical cash. That exemption leaves the stablecoin sector, already worth hundreds of billions of dollars, as the primary vehicle for digital dollars in the United States. The distinction is important for crypto firms that have built businesses around dollar-pegged tokens because rather than competing with a government-issued digital dollar, those issuers now operate in a market where the central bank is barred from entering at the retail level through 2030.
With both chambers aligned, the bill heads to President Trump, who is expected to sign it, given his earlier executive order. His signature would convert the temporary prohibition into binding law through Dec. 31, 2030.
FAQ
What did the US House pass this week regarding CBDCs?
The US House passed a housing bill that includes a provision banning the Federal Reserve from issuing a retail central bank digital currency (CBDC) through Dec. 31, 2030. The legislation prohibits the central bank from creating a CBDC directly or indirectly through financial institutions or other intermediaries.
When did the Senate pass the CBDC ban legislation?
The Senate passed the bill containing the CBDC ban on June 22 in an 85-5 vote. The House had earlier passed its own housing legislation by a 396-13 margin before aligning with the Senate version this week.
How does the bill treat private stablecoins?
The legislation exempts private, dollar-denominated digital assets including stablecoins from the CBDC prohibition, provided they preserve privacy comparable to physical cash. This leaves the stablecoin sector as the primary vehicle for digital dollars in the United States through 2030.
