US House Passes Bill Banning Fed CBDC for Four Years
The US House passed a bill with a provision banning the Federal Reserve from issuing a central bank digital currency for four years, sending it to President Trump for signature.
The U.S. House of Representatives passed the Road to Housing bill 358-32 on Tuesday night, including a two-page provision that bans the Federal Reserve from issuing a central bank digital currency (CBDC) for four years. The bill now heads to President Donald Trump, who is expected to sign it at noon ET on Wednesday.
This marks the first time a CBDC ban provision has reached the president's desk, although similar language has been attached to other bills in the past. The Fed has repeatedly stated that it would not issue a CBDC without explicit congressional authorization. For cryptocurrency traders, the ban removes a potential state-backed digital dollar competitor, which could be seen as positive for decentralized digital assets like Bitcoin. However, the provision is temporary (four years) and does not address broader regulatory clarity for the crypto industry. Traders may want to monitor NowPrice's crypto page for any market reactions as the bill moves toward enactment.
Looking ahead, market participants will watch for President Trump's signature and any accompanying statements. The four-year window also aligns with the next presidential term, meaning the CBDC debate could resurface in future legislative sessions. For now, the immediate impact on crypto markets appears muted, but the provision signals ongoing political resistance to a U.S. CBDC.