US Ban on Digital Dollar Until 2030 Set To Take Effect After Years of Promises

In addition to seeking to address the shortage of affordable houses in the US, the 21st Century ROAD to Housing Act would prohibit the Federal Reserve from issuing or creating a central bank digital currency, or digital dollar, either directly or through financial institutions and other intermediaries, until 31 Dec 2030. The restriction exempts privately issued, dollar-denominated payment instruments, such as stablecoins.  

Trump said on 10 Jul he would allow the bipartisan bill to become law without his signature, using his refusal to protest the Senate's failure to pass the Save America Act – a measure which would require voters to prove citizenship before registering to vote in federal elections. Because Congress remains in session, Trump's decision neither to sign nor veto the housing measure allows it to take effect without his approval.  

The result gives the anti-CBDC campaign its most consequential victory after several attempts to pass standalone restrictions stalled in Congress. Previous proposals included the Anti-CBDC Surveillance State Act, which passed the House in July 2025 but did not pass the Senate.

Privacy becomes policy 

A CBDC would be a digital version of cash issued and backed directly by the Federal Reserve. People could potentially use it for everyday payments much as they use money in a bank account or payment app, but the funds would be a direct obligation of the central bank rather than a commercial bank or private company. 

The prospect of a CBDC has prompted concerns that a government-issued payment instrument could give authorities greater visibility into how individuals spend money or potentially allow restrictions to be placed on transactions. 

Those privacy concerns helped transform what began as a technical debate over the future of payments into a campaign topic during the 2024 presidential election.  

Florida Governor Ron DeSantis, then preparing for a presidential run, signed legislation in 2023 seeking to prevent a federal or foreign CBDC from being treated as money in the US state. The Republican later promised to impose a permanent ban on the digital dollar nationally. Another Republican presidential candidate, Vivek Ramaswamy, also campaigned against a CBDC before Trump adopted the issue during the 2024 campaign.  

After returning to office, Trump signed an executive order prohibiting federal agencies from establishing, issuing or promoting a US CBDC, citing risks to privacy, financial stability and sovereignty. 

Europe takes another path

The housing provision goes further than an executive order because it would place the restriction in statute and make it harder for the next administration to reverse the policy unilaterally. Its 2030 expiry, however, means Congress would have to extend the ban or adopt a permanent framework for the prohibition to continue. 

The European Union is moving in the opposite direction. European Parliament lawmakers voted this week to begin negotiations with the various EU members governments on rules for a digital euro, bringing the project closer to reality. The proposed currency would be issued by the European Central Bank and used for everyday payments alongside cash, with privacy protections built into it.  

Whether a CBDC would necessarily enable surveillance depends on its design. Systems can be structured with different levels of anonymity, private-sector intermediation and access to transaction data. The political campaign against the digital dollar has largely focused on the most centralized versions, in which the government could potentially monitor payments. 

CLARITY faces clock 

The path taken by the CBDC provision offers a mixed signal for the pending CLARITY Act, which would establish a broader regulatory framework for digital assets in the US. 

Though the House passed CLARITY in July 2025, it's still awaiting a vote by the Senate. 

Unlike the CBDC ban, which was attached to a housing package supported overwhelmingly by both parties, the CLARITY Act is a stand-alone measure.  Proponents must still navigate disagreements over decentralized finance, ethics provisions related to Trump's family crypto ventures and stablecoin rewards. 

The bill would also need bipartisan support to clear the Senate's 60-vote threshold before reaching Trump. 

Lawmakers are due to return from the Independence Day holiday on 13 Jul with only a limited number of working weeks before the August recess. Failure to complete the legislation before lawmakers leave for the recess would push the debate closer to the midterm campaign period, when floor time becomes scarcer and bipartisan negotiations more difficult.  

Galaxy Research cut its estimate of the bill's chances of passing this year to 50% in early July. "Historically, very little substantive legislation moves in Congress after the August recess in a midterm election year," Alex Thorn, head of Galaxy Research, said in May.