Congress has enacted a temporary ban preventing the Federal Reserve from issuing a central bank digital currency until December 31, 2030. This provision was embedded within the bipartisan 21st Century ROAD to Housing Act, which reached final bicameral agreement on June 16, 2026. The Senate previously approved the measure with an overwhelming 89-10 vote.
The legislation targets housing affordability but strategically includes the CBDC prohibition to address bipartisan surveillance concerns. Senate Banking Chairman Tim Scott and Ranking Member Elizabeth Warren championed the effort, reflecting sustained legislative anxiety over government visibility into private financial transactions. Attaching this rider to must-pass housing legislation ensured its survival where standalone crypto bills might have failed.
Private stablecoin issuers like Circle and Tether stand to benefit significantly from this moratorium. A Fed-issued digital dollar represented an existential threat to these multi-billion-dollar businesses. With the public sector pathway blocked for six years, private entities face reduced competitive risk in the dollar-denominated digital asset space.
Despite this domestic consensus, geopolitical pressures remain a critical variable. China’s digital yuan and similar international projects continue to advance. As the 2030 expiration approaches, competitive pressure from foreign central banks may force Congress to reconsider the prohibition on retail digital money issuance.