šØ US Senate Votes 89-10 to Include CBDC Ban Until 2030 in Bipartisan Housing Billā30+ Lawmakers Push Permanent Prohibition
US Senate voted 89-10 Thursday to include amendment in 21st Century Road to Housing Act prohibiting Federal Reserve from issuing CBDC until December 31, 2030. Bill prohibits Fed from issuing CBDC "directly or indirectly through financial institution or other intermediary" but does not prohibit "open, permissionless, and private" dollar-denominated digital currencies like stablecoinsā30+ lawmakers signed March 6 letter urging permanent ban rather than temporary moratorium.
š Key Points:
š¹ 89-10 Bipartisan Vote: Senate voted 89-10 to include CBDC prohibition amendment in 21st Century Road to Housing Act; bans Federal Reserve Board of Governors or Federal Reserve Bank from issuing or creating CBDC or "any digital asset substantially similar" directly or indirectly; prohibition effective until December 31, 2030
š¹ Stablecoin Exemption: Bill does not prohibit dollar-denominated digital currency that is "open, permissionless, and private" such as stablecoins; Treasury Secretary Bessent and President Trump presented dollar-pegged stablecoins as way to extend US dollar hegemony; Trump and Republicans taken hardline stance against CBDCs
š¹ Permanent Ban Push: 30+ lawmakers signed March 6 letter urging Senate to pass permanent CBDC ban rather than temporary moratorium; Representative Ralph Norman stated "CBDC would give unelected bureaucrats unprecedented power over Americans' finances and threaten basic economic freedom"
š¹ Stablecoin Surveillance Concerns: Representative Warren Davidson (long-time CBDC critic) criticized regulated dollar-pegged stablecoins as having same surveillance capabilities as CBDCs; warned GENIUS Act regulations create avenue to "control" and "coerce" US population through financial surveillance and programmable money
š¹ Ray Dalio CBDC Warning: Hedge fund manager warned CBDCs would expand government control over finances stating "There will be no privacy, and it's a very effective controlling mechanism"; CBDCs likely won't be yield-bearing (no inflation protection) and can be automatically taxed or frozen by government
š Why It Matters:
š¹ Bipartisan Anti-CBDC Consensus: 89-10 vote demonstrates overwhelming bipartisan rejection of Fed-issued digital currency; Republican hardline stance combined with Democratic support signals CBDC politically toxic; contrasts with many central banks globally pursuing CBDC development (China, EU, UK)
š¹ Stablecoin Policy Divergence: Explicit exemption for "open, permissionless, and private" stablecoins while banning CBDCs positions private-sector dollar tokens as preferred digital currency path; aligns with GENIUS Act framework and Bessent/Trump dollar hegemony strategy; creates regulatory clarity for Circle, Paxos, others
š¹ Temporary vs Permanent Ban Debate: 2030 expiration date creates opening for future CBDC consideration; 30+ lawmakers pushing permanent ban suggests Republican wing wants irreversible prohibition; 2030 timeline coincides with potential post-Trump administration creating political uncertainty
š¹ Surveillance State Framing: Norman's "unelected bureaucrats" language and Davidson's GENIUS Act warnings frame debate as privacy/freedom issue not just monetary policy; Dalio's "no privacy, effective controlling mechanism" reinforces authoritarian surveillance narrative; positions CBDCs as existential threat to financial freedom creating political third rail
šÆ Bottom Line:
Senate's 89-10 vote banning Fed CBDCs until 2030 while exempting "open, permissionless, and private" stablecoins signals bipartisan rejection of government digital currency and embrace of private-sector dollar tokens despite surveillance concerns.
Source: https://www.tradingview.com/news/cointelegraph:19eb2b251094b:0-us-senate-votes-to-include-cbdc-ban-in-bipartisan-housing-bill/