US Senate Passes Bill Blocking Fed From Issuing CBDC
Summary
- The US Senate passed the ROAD to Housing Act, which includes a provision to restrict the Fed from issuing a CBDC.
- The bill would bar the Fed and regional Federal Reserve banks from issuing a CBDC or a similar digital asset.
- The provision would remain in effect temporarily through the end of 2030, and Fed chair nominee Kevin Warsh and President Donald Trump have both opposed a CBDC.
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The US Senate has passed a bill containing a provision that would bar the Federal Reserve from issuing a central bank digital currency, or CBDC.
CoinDesk reported on June 23 that the Senate approved the ROAD to Housing Act on June 22 by an 85-5 vote. The bill includes language prohibiting the Fed from issuing a CBDC or a similar digital asset either directly or through financial institutions.
Republicans have long opposed a CBDC, arguing it could expand government financial surveillance. The ban was added to the bipartisan housing-supply bill.
If enacted, the measure would prevent the Federal Reserve Board and the regional Federal Reserve banks from issuing or creating a CBDC. The provision is temporary and would remain in effect through the end of 2030.
Kevin Warsh, the Fed chair nominee, previously criticized a CBDC as "the wrong policy choice" during his confirmation hearing. President Donald Trump also banned the executive branch from pursuing a CBDC in a January 2025 executive order.
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