US Senate Bars Federal Reserve From Issuing CBDC Until 2030

The United States Senate approved a comprehensive housing bill that includes a provision effectively banning the Federal Reserve from issuing a central bank digital currency (CBDC) until at least the end of 2030, passing the measure in an overwhelmingly bipartisan vote.

The provision was attached to the 302-page 21st Century ROAD to Housing Act and cleared the Senate in an 89-10 vote.

@coindesk

Lawmakers placed the CBDC ban in the final pages of the broader housing package rather than as a standalone bill, a strategic move that could affect its legislative path.

The bill text contains specific technical language that bars the Fed from creating or issuing a CBDC “directly or indirectly,” and it forbids any digital asset that is “substantially similar” to a central bank digital currency.

The restriction explicitly closes potential routes for issuance through financial institutions or intermediaries, making both direct and indirect issuance unlawful under the provision.

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That comprehensive phrasing aims to prevent workarounds and covers a wide range of possible digital-asset architectures.

The move reflects longstanding Republican worries about government-controlled digital currency and a wider debate over financial privacy and the proper role of government in digital money.

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Republican lawmakers have pushed to prevent a U.S. CBDC and framed the ban as protecting individual liberty; industry groups such as the Digital Chamber welcomed the Senate vote and argued that financial privacy should remain with Congress and the public.

At the same time, the provision’s placement in a housing bill signals strategic legislative maneuvering to increase its chances of passage while navigating partisan priorities.

The vote comes against a backdrop of Federal Reserve research and global CBDC experimentation: the U.S. has remained in research and development, including work through the Boston Fed’s Project Hamilton, while more than 130 countries explore CBDCs and some jurisdictions have moved to pilot or implement digital currencies.

U.S. officials and experts have framed the Senate action as cautious compared with faster-moving foreign programs, and the legislation highlights the tension between domestic policy choices and international CBDC developments.

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The provision’s future is uncertain: House lawmakers have signaled they may challenge or rework parts of the Senate bill, and observers note the measure still faces an uncertain path to becoming law.

The Senate action follows earlier congressional efforts to regulate digital currency development, but similar 2023 proposals stalled, and the bill now awaits House consideration where different political dynamics and committee rules could alter its course.

@coindesk