US Congress Strikes Housing Deal, Bans CBDC Issuance Until 2030

Leaders from both chambers of the U.S. Congress have reached an agreement on a comprehensive housing bill titled the "21st Century ROAD to Housing Act." This legislative package includes a significant provision that prohibits the Federal Reserve (Fed) from issuing a central bank digital currency (CBDC) or any substantially similar digital asset until December 31, 2030. This bipartisan deal follows months of negotiations and aims to clarify the political stance on digital currencies while also addressing housing affordability.

The "21st Century ROAD to Housing Act" primarily aims to boost housing supply, reduce housing costs, and limit large institutional investors from purchasing single-family homes. The CBDC ban provision was incorporated into the updated legislative text, which reconciles differences between earlier House and Senate versions. Notably, the bill includes an exemption for stablecoins described as dollar-denominated, open, permissionless, and private, indicating they are not subject to this prohibition. House Republican leaders are expected to bring the legislation to a vote after lawmakers return on June 23. The Senate is anticipated to pass the bill this week, with the House then forwarding it to the U.S. President for signature next week.

Following the announcement of this legislative agreement, no immediate market reaction was observed for major cryptocurrency assets. However, the restriction on the Federal Reserve's ability to issue a digital dollar until 2030 could potentially create more room for privately issued stablecoins and other digital payment solutions developed by the private sector. This development sends significant signals regarding the future of the U.S.'s digital currency strategy and its position in the global digital currency competition.

The language regarding the CBDC ban reflects long-standing concerns that have been present in previous legislative efforts, such as Representative Tom Emmer's "Anti-CBDC Surveillance State Act." Such provisions stem from bipartisan anxieties surrounding the potential implications of central bank digital currencies on individual financial privacy and government surveillance. Furthermore, former U.S. President Donald Trump signed an executive order in January 2025 directing federal agencies to halt work related to central bank digital currencies. The strategic move to attach this prohibition to a "must-pass" housing bill underscores lawmakers' determination on this issue.

Analysts and market observers suggest that this decision will significantly influence the U.S.'s digital currency development roadmap. While it could create an opportunity for the growth of private sector digital assets like stablecoins and decentralized finance (DeFi) protocols, it also raises concerns that the U.S. might fall behind other major economies, such as China and the European Union, which are making progress in their digital currency initiatives. In the upcoming period, the final approval process of the bill and how the Federal Reserve will adapt to this prohibition will be closely monitored.