An amendment has been proposed to the Federal Reserve Act to ban the US central bank from issuing a central bank digital currency (CBDC) until 2030.
The language appears near the end of the 300-page “21st Century ROAD to Housing Act” (HR 6644), released by the Senate Committee on Banking, Housing, and Urban Affairs on Monday.
Section 10 of the proposed legislation states that the board of governors of the Federal Reserve System or a Federal Reserve bank “may not issue or create a central bank digital currency or any digital asset that is substantially similar to a central bank digital currency directly or indirectly through a financial institution or other intermediary.”
The bill also contains an exception for stablecoins, stating that the Fed “shall not prohibit any dollar-denominated currency that is open, permissionless, and private,” and fully preserves the privacy protections of the physical currency.
The proposed prohibition includes a sunset clause that expires on December 31, 2030, after which new legislation would be needed to maintain the ban.
The White House issued a statement supporting the Act and opposing a CBDC, which it said could “pose significant threats to personal privacy and liberty.”
The Senate advanced it overwhelmingly on a procedural cloture vote (84-6) on Monday, limiting debate and moving forward, clearing the way for full floor consideration.
Not the first attempt at blocking CBDCs
This version of the housing bill revives language from prior failed attempts to prevent a US CBDC and is not the original legislation.
The “No CBDC Act” (S 464) is a standalone bill introduced by Senator Mike Lee in February 2025 that would prohibit the Fed or Treasury from issuing a CBDC; however, it stalled in Congress.
Related: ‘No privacy’ CBDCs will come, warns billionaire Ray Dalio
Further legislation prohibiting the Fed from issuing a CBDC was introduced in June 2025 by Congressman Tom Emmer under the “Anti-CBDC Surveillance State Act” (HR 1919).
The bill passed a House vote on July 17, but has yet to pass full Senate approval.
China, Russia and India are testing CBDCs
Only three countries have officially deployed a CBDC: Nigeria, Jamaica, and The Bahamas, according to the Atlantic Council’s CBDC tracker.
A further 49 nations are actively testing CBDCs, including China, Russia, India and Brazil, while 20 nations have CBDCs in development and 36 are still researching them.
In February, Germany’s central bank president, Joachim Nagel, touted the benefits of CBDCs for the European Union, which is in the pilot phase.
Context
Current positioning around Regulation & Policy remains sensitive to primary-source updates, policy interpretation, and execution risk across major venues.
What To Watch
Key confirmation signals now include court filings, regulator statements, and any updated compliance guidance from the involved parties.
Market participants will monitor whether legal outcomes change exchange operations, token access, or disclosure standards in major jurisdictions.
Related: More from Regulation & Policy | Senate Housing Bill Prohibits Central Bank Digital Currencies in Crypto Regulation | Australias Digital Finance Potential: $24B Estimate in Crypto Regulation
