The potential implementation of a U.S. central bank digital currency (CBDC) is facing a formal blockade.
By Jesse Hamilton|Edited by Cheyenne LigonUpdated Jun 22, 2026, 11:46 p.m. Published Jun 22, 2026, 11:01 p.m. 2 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on The U.S. Senate has enacted a temporary prohibition on central bank digital currencies. (Jesse Hamilton/CoinDesk)SummaryShow- The bipartisan housing affordability bill passed by the U.S. Senate includes a four-year ban on central bank digital currencies.
- This legislation is anticipated to swiftly pass the House of Representatives, establishing a temporary prohibition on a CBDC, although no federal initiative is currently underway to create one.
The recent bipartisan housing affordability legislation passed by the U.S. Senate may effectively impose a formal restriction on the Federal Reserve from launching a digital dollar in the form of a CBDC, despite the Fed not currently pursuing such a project.
Republican lawmakers have vigorously opposed the notion of the U.S. adopting a CBDC, which they view as a dangerous form of government overreach concerning surveillance, and successfully advocated for its inclusion in the 21st Century ROAD to Housing Act, which passed the Senate with an 85-5 vote.
For a digital dollar to materialize, it would require backing from the White House, Congress, and the Federal Reserve, none of which have shown interest in pursuing such an option. However, if the House of Representatives approves the housing bill and sends it to President Donald Trump, the CBDC's development will be effectively curtailed.
This ban would only be in effect for a limited duration of four years, concluding at the end of 2030.
A CBDC would involve a central bank issuing and managing a digital asset similar to a government-backed stablecoin. The European Central Bank is advancing its digital euro, which is scheduled for a pilot program next year and aims for a full launch by 2029. Similarly, China has been actively developing a digital yuan through the People's Bank of China.
Former U.S. Fed Chair Jerome Powell had previously indicated that even if the Fed were to explore a CBDC, it would delegate its management to banks, which contradicts the concerns raised by Republican critics about creating a financial surveillance state. However, current Fed Chair Kevin Warsh has expressed his strong opposition to a U.S. CBDC, labeling it as a "bad policy choice" during his nomination hearing.
In January 2025, President Donald Trump had issued an executive order that barred his administration from pursuing a CBDC, citing concerns that it could jeopardize financial stability, individual privacy, and U.S. sovereignty.
Trump's allies in Congress supported this initiative, embedding it within the housing bill, stating that "the Board of Governors of the Federal Reserve System or a Federal Reserve bank shall not issue or create a central bank digital currency or any digital asset that is substantially similar to a central bank digital currency, either directly or indirectly through a financial institution or other intermediary."
House representatives are reportedly moving quickly to approve the housing bill, with a vote potentially occurring as early as Tuesday. Once signed by Trump, it will become law, including the provision against the CBDC.
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CEX Volumes Drop to Lowest Since September 2024 as RWA Perps Hit Record High
CEX Volumes Drop to Lowest Since September 2024 as RWA Perps Hit Record High
In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024. RWA perpetual futures volumes rose 10.4% against the trend, hitting a new all-time high.
By CoinDesk ResearchJun 15, 2026In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024. RWA perpetual futures volumes rose 10.4% against the trend, hitting a new all-time high.
Why it matters:
In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024. RWA perpetual futures volumes rose 10.4% against the trend, hitting a new all-time high.
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