The US Senate has delivered a significant blow to the Federal Reserve’s potential digital dollar ambitions, passing a provision that bans the creation of a central bank digital currency (CBDC) until at least December 31, 2030. Embedded in the bipartisan 21st Century ROAD to Housing Act. An Act which primarily addresses housing supply and investor limits. The Act passed with an overwhelming 89-10 vote on March 12, 2026.
This move, while temporary, underscores growing bipartisan skepticism toward government-issued digital currencies, often criticized for privacy risks and centralization. Crypto enthusiasts are hailing it as a “massive win for Bitcoin and freedom,” as one X post from @Vivek4real_ put it, potentially accelerating adoption of decentralized alternatives.
What’s in the 21st Century ROAD to Housing Act?
The Act was released by Senate Banking, Housing, and Urban Affairs Committee Chairman Tim Scott (R) and Ranking Member Elizabeth Warren (D). It combines the elements of two Acts and adds several new sections that were not included in either House or Senate packages.
New provisions of the Act would restrict large institutional investors from buying single-family homes and temporarily prohibit the Federal Reserve from establishing a digital dollar. Reforms highlighted within the Act also expand affordable housing financing, streamline regulations, and support community development.
Sec. 1001 addresses central banking digital currency directly prohibiting the Federal Reserve from creating a CBDC through 2030.
By sidelining a government digital dollar, the Senate is handing momentum to private-sector innovations. House support is still needed, but the Act may end up being crucial for CLARITY Act negotiations too.
This clears the runway for private stablecoin innovation. Much like what we are seeing in jurisdictions like Hong Kong. Potentially reshaping digital finance away from centralized control.
See Also:
Wholesale CBDCs and Stablecoins: A Dual Future for Digital Finance | Disruption Banking
