The US Senate and the House of Representatives have agreed on the final text of the "21st Century ROAD to Housing Act," which enshrines a statutory CBDC ban in the United States. The law prohibits the Federal Reserve from issuing a digital dollar until the end of 2030; the Senate cleared the revised version for debate by a vote of 87-8.
A CBDC would be digital central bank money that the Fed could issue directly to citizens, effectively a state-run alternative to private stablecoins and cash. The debate has been ongoing in the United States for years, and the Fed has so far made no final decision on a digital dollar. At first, the Trump administration blocked development de facto in January 2025 through an executive order. Now, however, the enshrinement by Congress creates a firmer, bipartisan legal foundation. Meanwhile, the voting history shows broad support: the Senate passed an earlier version in March 2026 by 89-10, and the House followed in May with 396-13. The CBDC provision itself, listed in the law as Section 1001, originally traces back to the National Defense Authorization Act, where it had previously failed.
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What Section 1001 prohibits the Fed from doing
The wording of the provision reaches far. Section 1001 prohibits the Federal Reserve from issuing or creating a CBDC or a "substantially similar" digital asset, both directly and indirectly through intermediaries. As a result, the law closes the obvious workaround in which the central bank does not issue digital central bank money itself but puts it into circulation through intermediary banks. Furthermore, the catch-all provision for the "substantially similar" asset is meant to prevent functionally equivalent constructions from emerging under another name.
The ban is, however, limited in time. It applies until December 31, 2030, after which a sunset clause takes effect: from 2031 onward, the Fed needs an explicit new authorization from Congress to even examine a digital dollar. This time limit was acceptable to both sides because it delegates the fundamental decision to a future Congress instead of writing it into law permanently. The NDAA backstory therefore explains the political path dependency, because after the failure in the defense budget the Republicans sought a more reliable legislative vehicle.
A compromise ignited precisely at this point. Several House Republicans, including Rep. Anna Paulina Luna (R-FL), had initially demanded a permanent ban. Ultimately, they accepted the time-limited version as a pragmatic price for passage.
CBDC ban in the US as a rider on a housing bill
The carrier bill itself has nothing to do with digital currencies. The "21st Century ROAD to Housing Act" comprises 56 provisions on housing supply, manufactured homes, mortgage financing, rural housing, veteran housing, and community banking. Large institutional investors are restricted from buying single-family homes, streamlines building permit procedures, and additionally modernizes federal housing assistance programs. This broad legislative momentum is precisely what made it an attractive vehicle for the contested anti-CBDC clause.
The coupling therefore follows a common legislative strategy. A contested provision that can hardly find a majority on its own gets attached to a "must-pass" law with broad support. The anti-CBDC provision had failed in the NDAA, yet it found a safe carrier in the housing bill. Furthermore, the package is backed by a bipartisan group of sponsors including Tim Scott, Elizabeth Warren, French Hill, and Maxine Waters, which lends the project stability. The June agreement additionally reduced the sunset period for the CDBG-DR disaster relief program from the original seven years to three, a concession by the House.
What stands out is that a digital currency ban ends up in a housing bill of all places. The political packaging illustrates how crypto-relevant policy is increasingly pushed through unrelated carrier bills. French Hill, chair of the House Financial Services Committee, called the bipartisan, bicameral agreement laborious, yet at the same time tangible progress.
"This bill is the result of years of work to lower costs, expand housing supply, cut red tape, protect taxpayers, and put the dream of homeownership within reach for more Americans. It is time to move forward, get this bill across the finish line, and bring real relief to the American people." - Tim Scott, Senator (R-SC), Chair of the Senate Banking Committee
Bessent's line and the broader crypto legislative framework
The ban aligns with the stated position of the Trump administration. US Treasury Secretary Scott Bessent reaffirmed in early June 2026 that a CBDC was "off the table," pointing to privacy and freedom concerns. A digital dollar would be a first step toward surveilling citizens, he argued. Thus, the law now gives this previously executive line binding statutory force that extends beyond the end of the current term.
Furthermore, the CBDC ban does not stand in isolation but fits into a broader regulatory framework. Bessent simultaneously emphasized the focus on the CLARITY Act, which is meant to create a framework for regulating digital assets. The Senate Banking Committee passed this draft in May 2026 by 15-9 in a bipartisan vote. In addition, the GENIUS Act covers stablecoins, so a pattern emerges: while the state bars itself from its own digital money, it is at the same time building a framework for private issuers. Both strands therefore form two sides of the same regulatory line.
What the CBDC ban means for stablecoin issuers
For private stablecoin issuers, the agreement is a direct competitive advantage. Circle with USDC and Tether with USDT need not fear any state-run digital dollar competition until the end of 2030, which could enter the market with the trust and reach of the Federal Reserve. The sunset clause, however, remains an open flank for long-term planning, since a future Congress could reopen the door from 2031. Until then, the law nevertheless secures established providers a state-guaranteed competitive window.
The legislative process is, meanwhile, not yet complete. Senate Majority Leader John Thune filed cloture on the revised version after the procedural vote, steering the Senate toward the final vote. Subsequently, the House is expected to vote on the final version after returning from recess, after which presidential signature would be required. If the law takes effect, the CBDC ban runs until December 31, 2030, while the 2025 executive order additionally secures the executive line.
