A four-year ban on a U.S. central bank digital currency (CBDC) is set to take effect if a housing bill becomes law Saturday (July 11). While there has been no serious effort to launch a CBDC, the crypto industry and Republican lawmakers have long opposed any potential of that happening.
Status of CBDC Legislation in the U.S. Congress
Proposals to restrict the Federal Reserve’s authority over digital currencies have appeared in legislative sessions. A housing bill approved by Congress and sent to President Donald Trump includes a provision that prohibits the Federal Reserve from issuing a CBDC through the end of 2030. If the President takes no action, the bill will become law at midnight on July 11.
The House Financial Services Committee highlighted the provision in a June 23 press release, stating that the bill includes a prohibition on the issuance of a CBDC until December 31, 2030. Republican politicians added the ban to the housing bill due to concerns that the technology could be used for government surveillance, and to help secure House Republican support for its passage.
Federal Reserve Stance on Digital Currency
The Federal Reserve is the entity prohibited by the proposed housing bill from issuing a CBDC through the end of 2030. Additionally, it was reported in January 2025 that an executive order signed by Trump, “Strengthening American Leadership in Digital Financial Technology,” included a provision prohibiting the development of a CBDC.
Privacy Concerns and Industry Perspectives
The debate over a U.S. CBDC centers on the tension between technological innovation and individual civil liberties. When an earlier version of the housing bill with the CBDC ban was considered by the Senate in March, three digital asset-focused groups expressed support.
The Digital Chamber CEO Cody Carbone stated: “Financial privacy is a cornerstone of American freedom, and any decision to authorize a Central Bank Digital Currency must remain with Congress and the American people.”
The Blockchain Association CEO Summer Mersinger said: “A government-issued CBDC would threaten core American values — financial privacy, civil liberties and limits on state power — by giving the government unprecedented insight into (and potential leverage over) everyday transactions.” The Crypto Council for Innovation added that legislative certainty would help foster private-sector innovation while protecting privacy.
Comparison of Legislative Approaches
| Proposal | Status | Primary Objective |
|---|---|---|
| Housing Bill Provision | Sent to President | Prohibit Federal Reserve from issuing a CBDC until December 31, 2030. |
| Executive Order | Signed (January 2025) | Prohibit the development of a CBDC. |
Summary of Current Policy Environment
As of July 10, a ban on the issuance of a CBDC is pending the finalization of a housing bill. The U.S. government’s approach to digital currency is characterized by opposition from Republican lawmakers and crypto industry groups, as well as an executive order prohibiting CBDC development.
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