The U.S. House and Senate have reached a deal on a housing bill that includes a ban on the Federal Reserve issuing a central bank digital currency (CBDC) until Dec. 31, 2030. The move, which protects private stablecoins, gives issuers like Tether and Circle a multi-year advantage. The policy aligns with the Trump administration's anti-CBDC stance and diverges from the global trend of countries like China developing digital currencies.
CBDC ban legislation
- ▪The U.S. House and Senate have reached a deal on a bipartisan bill known as the "21st Century ROAD to Housing Act."
- ▪The bill includes a provision to ban the Federal Reserve from issuing a central bank digital currency (CBDC) until December 31, 2030
- ▪The primary goals of the "21st Century ROAD to Housing Act" are to boost housing supply, lower costs, and limit institutional homebuyers
- ▪To become law, the bill requires a final House vote, which is expected after June 23, followed by a presidential signature
- ▪The legislation explicitly protects private, permissionless, and dollar-backed stablecoins from the CBDC ban
- ▪The bill is backed by a bipartisan group including Sen. Tim Scott, Sen. Elizabeth Warren, Rep. French Hill, and Rep. Maxine Waters
Stablecoin market impact
- ▪Tether's USDT is the largest stablecoin with a market value over $186 billion, while Circle's USDC is valued at more than $75 billion
- ▪The ban is considered a major advantage for stablecoin issuers like Tether (USDT) and Circle (USDC), giving them years to expand
Global CBDC development
- ▪The U.S. is diverging from the global trend by allowing private companies to lead digital dollar innovation instead of creating a government-issued one
- ▪Over 100 countries are exploring CBDCs, with China expanding its digital yuan project and Europe working on a digital euro
Trump administration crypto policy
- ▪In January 2025, President Donald Trump signed an executive order halting all federal work related to CBDCs
- ▪Treasury Secretary Scott Bessent has stated that a U.S. digital dollar remains "off the table."
- ▪Some House conservatives, including Rep. Anna Paulina Luna, have called for the temporary CBDC ban to be made permanent
- ▪Critics oppose CBDCs over concerns they could enable financial surveillance and represent a centrally-controlled asset
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