In a significant legislative move, the U.S. Senate has advanced a comprehensive housing affordability bill that includes a crucial provision aimed at the future of digital currency in the country. The 21st Century ROAD to Housing Act received overwhelming bipartisan support, passing with an 85-5 vote. A prominent component of the bill is a formal prohibition on the issuance of central bank digital currencies (CBDCs) by the Federal Reserve until the end of 2030.
This decision comes as Republican leaders have insisted that the CBDC ban be included in a bill that is largely considered one of the most bipartisan pieces of legislation in recent memory. The House of Representatives is expected to expedite a vote on the measure, which is then set to be sent directly to President Trump’s desk for his signature.
The bill includes explicit language that prohibits the Board of Governors of the Federal Reserve System or any associated Federal Reserve bank from issuing, creating, or circulating a CBDC, whether directly or through intermediaries. Notably, the legislation also provides protections for private stablecoins, ensuring that “open, permissionless, and private” dollar-denominated assets remain unaffected by the ban.
This legislative move follows an executive order signed by Trump in January 2025, which initiated the political groundwork for a CBDC prohibition. At that time, Trump cautioned that a government-issued digital currency could jeopardize the stability of the financial system, individual privacy, and U.S. sovereignty.
Kevin Warsh, the new chair of the Federal Reserve, has echoed concerns regarding CBDCs, calling them a “bad policy choice,” marking a rare alignment of views between the Federal Reserve and the White House.
In the wake of this news, the cryptocurrency market responded with skepticism. Bitcoin’s price fell to about $62,000, representing a decline of more than 3.7% in a single day. This drop highlights broader trends affecting the crypto market, with Bitcoin having lost nearly half its value since reaching a peak of over $125,000 in July 2025. Some analysts predict that further declines could occur, with potential losses exceeding 15% as market conditions evolve.
The CBDC prohibition is part of a broader legislative framework under consideration by Congress. In July 2025, Trump signed the GENIUS Act, marking the first federal law governing stablecoins, which mandates that issuers maintain one-to-one reserves, provide monthly disclosures, and obtain federal licenses. This legislation effectively provided a clear path for private digital currencies while simultaneously hindering the government’s attempt to establish its digital dollar.
The third part of this legislative initiative, known as the Digital Asset Market Clarity Act, aims to provide essential guidance on whether crypto tokens should be classified as securities or commodities. Having passed the Senate Banking Committee in May 2025, the bill awaits further action on the Senate floor, where its chances of passage are estimated at around 60%. However, time is of the essence, as it requires support from at least seven Democratic senators to succeed before Congress recesses for midterm campaigning in August.
Senator Bill Hagerty has expressed optimism about the Clarity Act’s prospects in the coming weeks. The failure to resolve the regulatory uncertainty surrounding cryptocurrencies—specifically who supervises these assets, the SEC or the CFTC—could have significant implications ahead of the upcoming elections.
If Trump signs the housing legislation, it will mark a pivotal moment in federal efforts to restrict governmental digital currency initiatives, sending a clear message from Washington: while private cryptocurrencies are welcome, the Federal Reserve’s version of a digital dollar is not.
