The Federal Reserve is not allowed to issue a central bank digital currency until the end of 2030
The CBDC ban is clearly worded: The Federal Reserve may not issue a central bank digital currency either directly or through intermediaries such as commercial banks until December 31, 2030. This also applies to any digital asset that is “substantially similar” to a CBDC.
The regulation is contained in a 302-page housing law that primarily deals with affordable housing and restrictions on private equity firms when purchasing single-family homes. The fact that the CBDC ban was added to the last negotiations shows how urgent the issue has become for both parties.
The direction was already clear in the preliminary vote: 84 votes to 6 signaled early on that the ban enjoyed broad support. The vote follows Trump’s January 2026 executive order, which already banned federal agencies from working on CBDCs.
Private stablecoins are expressly exempt from the CBDC ban
What makes the law particularly interesting is the deliberate exception for private digital dollar currencies. Stablecoins such as USDT and USDC are not subject to the CBDC ban as long as they are “open, permissionless and private”. This effectively gives private stablecoin issuers a monopoly on the digital dollar.
Treasury Secretary Scott Bessent and President Trump see stablecoins as a strategic tool to defend dollar hegemony in competition with the Chinese digital yuan.
China is already testing the central bank digital currency e-CNY in cross-border payment transactions with the Emirates via the mBridge platform. The fact that the USA decides against its own CBDC and instead relies on private sector solutions is a geopolitical decision with long-term consequences.
The Blockchain Association calls a state-owned central bank digital currency a threat to civil rights
The reactions from the crypto industry were clear. Blockchain Association CEO Summer Mersinger said a federal central bank digital currency would threaten core American values. These include financial privacy, civil rights and limiting government power.
Digital Chamber CEO Cody Carbone spoke of a victory for financial freedom. Hedge fund manager Ray Dalio had also previously warned that CBDCs were a “very effective controlling mechanism” for governments.
However, the CBDC ban is not yet a finished law. The House of Representatives still has to agree, and resistance is emerging there: Some MPs are calling for a permanent rather than temporary ban, others are criticizing the housing construction restrictions in the same law. In addition, Trump has announced that he will not sign any legislation until the SAVE Act on voter ID requirements is passed.
Nevertheless, the vote sends a historic signal: the world’s largest economy has overwhelmingly spoken out against a state surveillance currency. For Bitcoin supporters, this confirms what they have been arguing for years: a currency that makes every transaction trackable is the opposite of monetary freedom.
The CBDC ban closes the door on the digital dollar as a control tool. If you want to replace them as a store of value in the long term, the answer will not be with stablecoins, but with 21 million BTC. We previously reported on the growing debate over financial privacy and the US Treasury classifying Crypto Mixer as a legitimate privacy tool for the first time.
