Congress blocks Federal Reserve digital dollar until 2030

The bipartisan measure, which passed the Senate 85-5 earlier this week, effectively codifies the Trump administration’s existing stance on monetary policy. By barring the Federal Reserve from creating a dollar-denominated digital asset that functions as a direct liability of the central bank, the legislation shifts the current executive order into permanent federal law. This restriction remains in effect until December 31, 2030, unless lawmakers choose to revisit the mandate before that deadline.

While the bill places a hard stop on a government-issued digital dollar, it explicitly carves out exceptions for private stablecoins. The language targets only assets issued by the Federal Reserve or its intermediaries, leaving room for private, permissionless digital currencies to operate. This distinction aligns with broader administration goals, including those voiced by Treasury Secretary Scott Bessent, who has consistently signaled that a retail CBDC is not part of the current economic agenda.

Beyond digital currency policy, the act serves as a major legislative push to address domestic housing supply and affordability. Senate Banking Committee Chairman Tim Scott championed the bill as a tool to reduce regulatory red tape, limit large institutional investor influence, and accelerate new construction. By tethering these housing reforms to the digital currency ban, lawmakers have integrated two distinct policy priorities into a single statute, marking a significant victory for the administration’s legislative agenda.