U.S. Senate Housing Bill Includes CBDC Ban
The bipartisan ROAD to Housing Act introduced by the U.S. Senate Banking Committee was originally intended to expand housing supply and improve affordability, but it also includes provisions restricting central bank digital currencies. The measure would bar the Federal Reserve from issuing a CBDC before 2031. The debate centers on digital-dollar transaction privacy, financial surveillance and Congress's authority to define the Fed's powers.
The Senate recently passed the bill by an 85–5 vote, and the House and Senate agreed on a version barring the Fed from issuing a CBDC through the end of 2030, creating a ban of about four years. The White House canceled a scheduled signing after the bill was sent to President Donald Trump. He has 10 days from receiving it to sign or veto it, and the ban has not yet taken effect.
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The history behind this eventU.S. Housing Law Takes Effect, Formally Banning a Fed Digital Dollar
Plans for a U.S. government-issued digital dollar, or CBDC, have long drawn controversy in the financial sector. Critics fear a government digital currency would compete unfairly with privately issued stablecoins and disrupt existing financial and cryptocurrency markets. The private crypto industry therefore lobbied heavily to prevent the Federal Reserve from expanding its control over digital currencies, viewing the restrictions as crucial to preserving market diversity.
A U.S. housing bill formally took effect at midnight on July 16, 2026, automatically becoming law even without President Donald Trump’s signature. An attached provision formally prohibits the Federal Reserve from issuing a digital dollar, imposing a four-year ban through 2030. The measure effectively puts the official U.S. digital-dollar project on hold and gives the private crypto market a crucial four-year window to develop without government competition.
US Lawmakers Demand Permanent Ban on Federal Reserve CBDC
A central bank digital currency, or CBDC, is digital legal tender issued directly by a central bank. Some US lawmakers fear that if the Federal Reserve creates a CBDC system capable of tracking individual transactions, the government could expand financial surveillance, threatening constitutionally protected privacy rights, financial freedom and the private-sector payments market.
Several US lawmakers recently sent a letter to congressional leaders arguing that existing temporary restrictions are insufficient to prevent the Federal Reserve from launching a CBDC in the future and calling for a “permanent” statutory ban. They also warned that without clear legal safeguards, CBDC infrastructure could be used for financial surveillance without due process. Reports did not disclose the exact date of the letter or the number of signatories.
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