The U.S. Senate approved a comprehensive housing affordability bill that contains a significant clause halting the creation and circulation of a Federal Reserve central bank digital currency (CBDC) until December 31, 2030. This provision explicitly prohibits the Federal Reserve Board or any Federal Reserve bank from issuing any form of CBDC, either directly or through intermediaries, marking a decisive legislative stance on government-backed digital money.
The bill, known as the 21st Century ROAD to Housing Act, passed with overwhelming bipartisan support, 85-5, and includes a carve-out protecting private stablecoins that are "open, permissionless, and private," allowing them to continue operating without government interference. Following the Senate’s vote, the House of Representatives was expected to expedite its own approval, moving the package closer to President Donald Trump’s signature.
This Senate move aligns with former President Trump’s earlier executive order, issued in January 2025, which forbade federal agencies from engaging in CBDC development, citing concerns over financial stability, individual privacy, and national sovereignty. The recent appointment of Kevin Warsh as Federal Reserve Chair has reinforced this position; Warsh has publicly criticized a U.S. CBDC as an unwise policy decision, reflecting consensus between the Fed and the executive branch on this issue.
While official efforts block a federal digital dollar, private stablecoins have gained legislative approval. The GENIUS Act, signed into law in July 2025, represents the first U.S. federal stablecoin regulation. It requires issuers to maintain full reserves, conduct monthly disclosures, and obtain federal licenses, thereby granting legal legitimacy to private digital dollar tokens even as the government abstains from issuing its own CBDC.
The Senate is also considering further crypto legislation, such as the Digital Asset Market Clarity Act. This bill aims to create a clear framework distinguishing when a crypto token qualifies as a security or a commodity. It passed the Senate Banking Committee and awaits a floor vote, with hopes for approval before the legislative calendar pauses for midterm election season. Its passage requires bipartisan support, which remains uncertain, reflecting challenges in regulating the rapidly evolving crypto space.
Meanwhile, the cryptocurrency market has shown volatility. Bitcoin’s price dropped significantly following the Senate vote and a broader tech selloff. Since reaching an all-time peak above $125,000 in mid-2025, Bitcoin has lost around half its value, and some indicators suggest a further decline is possible before the market stabilizes.