CoinTelegraph
A US law banning the issuance of a central bank digital currency is now in effect through 2030, after President Donald Trump declined to sign the bill, allowing it to lapse into law under the ten-day constitutional clock. The statute prohibits both retail and wholesale CBDC issuance by the Federal Reserve and blocks funding for any related infrastructure through the end of the decade.
Why it matters
The ban closes the policy ambiguity that has shadowed US digital-asset strategy since the Fed's 2022 research pilots. Private-sector stablecoins and tokenised dollar rails now inherit a structural advantage, since no government-issued digital dollar can compete with them for at least four years. For stablecoin issuers, the bill effectively turns USDT and USDC into the de facto US digital dollar on domestic rails, with all the regulatory and reserve obligations that come with that role.
Market impact
Expect faster stablecoin legislation to follow, since Congress now needs to define the framework that will actually carry the dollar on chain. Bank-issued tokenised deposits and licensed private settlement networks gain ground at the expense of any public-sector alternative. Watch the Treasury and Fed's next round of guidance for how the new statutory floor reshapes pilot programs that were already underway at regional Federal Reserve banks.
Frequently asked questions
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What did the new US law actually ban?
The statute prohibits the Federal Reserve from issuing a central bank digital currency in either retail or wholesale form and blocks federal funding for any related infrastructure through 2030.
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How did the bill become law without a signature?
President Trump declined to sign the bill, allowing it to lapse into law under the ten-day constitutional clock once Congress was in session.
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What happens to existing CBDC research and pilots?
Funding is cut off through 2030, which effectively halts the research and pilot programs the Fed and regional Reserve banks had been running since 2022.
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How does this affect stablecoins like USDC and USDT?
With no government digital dollar possible for at least four years, private stablecoins become the de facto US digital dollar on domestic rails, raising the stakes for the reserve and disclosure rules Congress will now have to set.
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What regulatory action is likely to follow?
Expect Congress to accelerate stablecoin framework legislation to define how the dollar moves on private rails, alongside Treasury and Fed guidance reshaping the new statutory floor.
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