The provision is included in the housing bill and applies to any “substantially similar” virtual assets. We break down how the ban works and what it means for the US crypto market.
The Senate and House of Representatives have reached an agreement on the 21st Century ROAD to Housing Act, which prohibits the Federal Reserve from issuing a central bank digital currency (CBDC) until December 31, 2030. The restriction applies to any “substantially similar” virtual assets but makes an exception for private stablecoins.
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The bill, aimed at addressing housing affordability, includes the CBDC ban as an additional measure—a common strategy of attaching non-core provisions to must-pass legislation.
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What, Why, and How Long — All the Details on the 21st Century ROAD to Housing Act
The bill says the Fed cannot directly or indirectly “issue or create a CBDC or any digital asset that is essentially similar to one.” The provision expires on December 31, 2030.
An exception is made for stablecoins—”currency denominated in dollars that is open, permissionless, and confidential.” Lawmakers also added a three-year transition provision for disaster assistance programs as a compromise with the House.
Read more: How the CLARITY Act Could Reshape US Crypto Trading
Political Context and Crypto Market Regulation in 2026
The CBDC ban was added to the housing bill back in March when the Senate passed it. The House will consider the document on June 23. Leaders of both chambers expect swift passage—a victory for Republicans who have spent years trying to push a CBDC ban through Congress.
The ban creates a favorable environment for private stablecoins, which now have a clear regulatory exception. It reduces the risk of competition from a government digital currency and strengthens the position of USDC, USDT, and other dollar-backed stablecoin issuers.
For bitcoin (BTC) and decentralized assets, it’s also a positive signal. The government isn’t trying to create a centralized digital alternative, preserving bitcoin’s status as “digital gold.”
Learn more: Stablecoin Regulations 2026 — What Crypto Traders Need to Know Before Using
