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US Bans Fed CBDC Until 2030, Carves Out Stablecoins
The U.S. ban on CBDC development until 2030 may boost private digital currency innovation while raising privacy and regulatory concerns. United States House passes bill banning Fed from creating CBDC
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Congress halted any near-term Federal Reserve digital dollar project. The House on Tuesday passed the 21st Century ROAD to Housing Act, a wide-ranging bill that prohibits the Fed from issuing a central bank digital currency until December 31, 2030. The Senate cleared the same bill 85-5 on June 22.
The prohibition sits in Title XI, Section 1101 of H.R. 6644. It blocks both direct and indirect issuance of a retail CBDC. The Fed had explored the concept through research papers and a Boston Fed pilot. No launch was imminent. The formal ban codifies a policy President Trump set by executive order in January 2025.
The bill carves out an exception for private, dollar-denominated digital assets. They must preserve privacy comparable to physical cash. That exemption gives companies like Circle and Tether a clearer path to operate in the crypto market. Congress effectively told the market it will not build its own digital dollar and will tolerate private versions under those conditions.