Senate Votes 85-5 — Freezes Fed CBDC Plans Until 2030
By John Nada·Jun 23, 2026·4 min read
The U.S. Senate's surprise 85-5 vote pauses Federal Reserve's CBDC plans till 2030, as global digital currency efforts gather pace.
The U.S. Senate has thrown a curveball by passing the 21st Century ROAD to Housing Act with a commanding 85-5 vote. This bipartisan legislative package, primarily aimed at addressing housing issues, carries an unexpected provision that freezes any Federal Reserve initiatives to issue a central bank digital currency (CBDC) until at least 2030. Despite the lack of active federal efforts to develop a U.S. CBDC, this decision has significant implications for the digital financial landscape.
The provision embedded in the housing bill effectively prohibits the Federal Reserve from issuing or creating any digital asset resembling a CBDC. It states that the Fed "may not issue or create a central bank digital currency or any digital asset that is substantially similar," either directly or indirectly through a financial institution or other intermediary. More than just a bureaucratic requirement, this sets a substantial barrier to the evolution of a digital currency in the U.S., which contrasts sharply with global trends in digital finance.
Interestingly, the legislation carves out an exemption for private stablecoins, allowing them to operate without restriction under previous regulations such as last year's GENIUS Act. This means that companies like Circle and Tether, which issue dollar-denominated, open, permissionless, and private stablecoins, can continue their operations unaffected by the CBDC freeze. This carve-out highlights the nuanced approach the Senate is taking towards digital currencies, distinguishing between government-issued digital currencies and those in the private sector.
Senators have hailed the passage of the bill as a rare bipartisan victory. Tim Scott, a Republican from South Carolina and Chair of the Banking Committee, alongside Elizabeth Warren, a Democrat from Massachusetts, crafted this legislative package to address the pressing issues of the housing crisis. Their focus has been on lowering housing prices and increasing the housing supply, rather than the surprising digital currency ban that comes with the bill. Warren has emphasized that the bill represents significant bipartisan cooperation, calling it the most substantial housing package in three decades.
The decision to pause Federal Reserve's CBDC plans comes amid a global shift towards digital currencies. While the U.S. takes a step back, the European Central Bank is advancing plans for a digital euro, aiming for a pilot launch next year and a full rollout by 2029. Similarly, China is rapidly expanding its digital yuan, known as e-CNY, by integrating 26 financial institutions into its cross-border use this month. According to the Atlantic Council, three countries have already launched a CBDC, with dozens more in various stages of development or pilot testing.
The U.S. Senate's move reflects a cautious stance on digital currencies, influenced by significant political figures such as Fed Chair Kevin Warsh and President Donald Trump, both of whom have publicly opposed a federal digital currency. Trump, in particular, signed an executive order in January 2025 directing his administration not to pursue a digital dollar. Conservative critics, including some House Republicans, argue that CBDCs pose risks as potential tools for financial surveillance.
House conservatives, although pleased with the temporary freeze on CBDCs, have expressed a desire for a permanent halt. Representative Anna Paulina Luna from Florida has voiced concerns, describing CBDCs as universally detrimental. Despite these opinions, the bill is set for a quick vote in the House, possibly as soon as Tuesday, before it is expected to land on President Trump's desk for final approval.
The wider implications of this U.S. legislative decision are significant, as it positions the country in contrast to the global enthusiasm for digital currencies. The conversation now shifts to the House and eventually to President Trump, who remains a vocal opponent of a digital dollar. These developments could play a crucial role in shaping the future of the American financial landscape, as the rest of the world continues to explore the potential of digital currencies.