US Senate Proposal: Could Suspend Fed's Digital Currency Project Until 2030

A bill has been introduced in the United States Senate that aims to prohibit the Federal Reserve from issuing a central bank digital currency (CBDC) directly or through third-party intermediaries.

The bill's scope provisions are designed to close potential workarounds by prohibiting indirect issuance through third parties during the suspension period. The text primarily targets government issuance and creation, rather than broadly restricting private sector digital asset activities, the latter of which would be handled separately through exceptions.

According to the "Road to 21st Century Housing Act," the suspension period for a Federal Reserve digital dollar would last until December 31, 2030. The bill includes a stablecoin exception that protects privacy. Functionally, the exception distinguishes retail CBDCs from private sector stablecoins that meet strict privacy and open standards. It indicates a policy preference, at least until the 2030 sunset clause, for private sector digital dollar solutions, while deferring any decision on a Fed-issued retail CBDC, the outcome of which may depend on evolving views on monitoring risks, innovation, and US competitiveness.