CryptoSlate
The US Senate passed the 21st Century ROAD to Housing Act on Monday by an overwhelming 85-5 vote, a sweeping bipartisan housing package that buries a provision barring the Federal Reserve from issuing a retail central bank digital currency through at least the end of 2030. Even after that freeze expires, the Fed would need explicit, affirmative authorization from Congress to move forward with any substantially similar digital asset. The bill's primary purpose is to address the housing crisis by boosting construction, streamlining permitting, and limiting large private-equity acquisitions of single-family homes.
Senator Elizabeth Warren, a long-standing critic of private crypto, co-authored and advanced the package despite having told the Senate in 2021 that central bank digital currency held "great promise" and could "help drive out bogus digital private money." The Massachusetts Democrat's reversal is the most visible contradiction in a bill where the CBDC language survived both chambers largely without debate.
Why it matters
The vote codifies a policy direction the executive branch had already taken. President Donald Trump signed an executive order in January 2025 directing agencies to stop developing, establishing, or promoting a CBDC, and current Federal Reserve leadership has repeatedly said no retail digital dollar would launch without congressional authorization. A statutory prohibition, though, is harder to unwind than an executive order: reversing it would require new legislation, not a change of administration. The bill leaves room for the Fed to continue research into wholesale tokenized settlement and institutional payment rails, and the New York Fed remains a participant in Project Agorá, the cross-border wholesale CBDC initiative.
The US now stands apart from the rest of the G20, where every other member is actively pursuing a digital currency and 18 are in advanced exploration or active pilot stages. The Atlantic Council counts 146 countries and currency unions, representing more than 98% of global GDP, exploring or developing a CBDC. Emerging markets including Kazakhstan and Rwanda are accelerating their programs to counter the spread of private stablecoins, while advanced economies like Canada and Australia have recently deprioritized retail CBDCs.
Market impact
For crypto markets, the bill removes one of the most discussed structural risks to dollar-denominated stablecoins: a retail FedCoin competing directly for consumer wallet share.
Frequently asked questions
-
What did the Senate housing bill do to the US CBDC?
The 21st Century ROAD to Housing Act, passed 85-5 on Monday, includes a provision barring the Federal Reserve from issuing a retail CBDC through at least the end of 2030. After that, the Fed would need explicit congressional authorization to proceed with any substantially similar digital asset.
-
Did Elizabeth Warren change her position on CBDCs?
Warren told the Senate in 2021 that central bank digital currency held "great promise" and could help drive out private crypto alternatives. She co-authored the 2025 housing package that blocks a retail CBDC, a position the bill's authors describe as a bipartisan compromise rather than a permanent reversal.
-
Can a future president reverse the CBDC ban?
Not directly. The statutory prohibition would require new legislation to overturn, not just an executive order. The 2030 expiration gives Congress a window to revisit the issue, but until then the bar remains in place.
-
How does the US compare to other countries on CBDCs?
According to the Atlantic Council, 146 countries and currency unions representing more than 98% of global GDP are actively exploring or developing a CBDC. Every other G20 member is pursuing one, with 18 in advanced exploration or active pilot stages.
-
What does this mean for stablecoins and private crypto?
With a US retail CBDC legally blocked through 2030, the direct competitive threat to private stablecoins from a government-issued digital dollar recedes. The bill does not affect wholesale tokenized settlement work, and the New York Fed remains in Project Agorá.
WuBlockchain
CoinDesk
Crypto News
WatcherGuru
TheBlock
CoinTelegraph