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Trump administration’s anti-CBDC push gets Senate approval

US Senate Passes Housing Bill With Four-Year Fed CBDC Ban
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President Donald Trump’s push to prevent the creation of a CBDC is starting to shape up into a regulation in the U.S. On Monday, the U.S. Senate approved the 21st Century ROAD to Housing Act in an 85–5 vote. While the bill essentially aims to increase the national housing supply and improve affordability, it also carries a clause prohibiting the federal bank from creating a CBDC.

The bill passed by the Senate prohibits the Federal Reserve from creating or issuing a CBDC through December 31, 2030.

A CBDC or a Central Bank Digital Currency is a digital token issued by central banks representing the national fiat currency on a blockchain network. This allows the movement of digital fiat currencies via blockchains, leaving permanent and immutable logs — bringing more transparency to money movement.

President Trump has been strongly opposing a CBDC for the U.S., warning that it would compromise the financial privacy of the nationals.

As per the 21st Century ROAD to Housing Act, “the Board of Governors of the Federal Reserve System or a Federal reserve bank may not issue or create a central bank digital currency or any digital asset that is substantially similar to a central bank digital currency directly or indirectly through a financial institution or other intermediary.”

The rather tucked-away anti-CBDC clause in this bill has a slightly more political angle representing a classic Washington trade-off .

While the Democrats wanted to pass a housing bill to crack down on corporate landlord, the Trump administration seeks a hard wanted a hard ban on a federally-issued digital currency.

To ensure that the housing bill had enough support to pass, lawmakers merged the two completely unrelated topics together into one giant package. The tactic worked and by iving Republicans a major financial victory with the anti-CBDC clause, Democrats secured the votes needed to pass their housing priorities through the Senate.

The bill, that blocks major Wall Street firms from buying Americans’ single-family homes among other laws, is now in the House of Representatives for a final vote which is expected to materialize as soon as this week.

If all hurdles cleared, the bill passes the House, the bill should reach President Trump’s desk for his signature by late June or early July 2026. President Trump is expected to sign the bill into a law without a delay.

While under the Trump administration, the U.S. is trailing away from the CBDC plans other regions like India, China, and Russia have made strides in the CBDC-related research, development, and experimentation. The BRICS nation have been discussing the creation of a CBDC-dominated payment system to rid cross-border settlements of the dollar dominance. The idea had witnessed a strong pushback from President Trump in late 2024.

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