Summary
Section 1101 of the 21st Century ROAD to Housing Act (H.R. 6644) contains the first statutory prohibition on a US central bank digital currency. The provision was added as a rider during Senate Banking Committee markup, championed by Chairman Tim Scott (R-SC), and passed with veto-proof margins (85-5 Senate, 358-32 House). President Trump let the bill become law on July 10, 2026, without his signature after demanding the SAVE America Act first.
Key Provisions of Section 1101
The Core Prohibition
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."
Duration
The prohibition runs through December 31, 2030. After that date, Congress must affirmatively authorize any CBDC by separate Act of Congress.
Definition of CBDC
The bill defines a CBDC as a dollar-denominated digital asset that is:
- U.S. currency
- A direct liability of the Federal Reserve System
- Widely available to the public
This keeps the restriction tight on a Fed-issued retail product while leaving wholesale settlement experiments and private-sector digital dollars outside its reach.
Stablecoin Carve-Out (Subsection c)
The prohibition "shall not prohibit any dollar-denominated currency that is open, permissionless, and private, and fully preserves the privacy protections of United States coins and physical currency."
This language is designed to keep private stablecoins outside the freeze. The carveout slots in alongside the GENIUS Act stablecoin framework and the CLARITY Act.
Amendment to the Federal Reserve Act
The CBDC section amends the Federal Reserve Act itself, giving it statutory permanence beyond a simple legislative provision.
Legislative History
- Senate first attached the CBDC ban in March 2026, passing the package 89-10
- House cleared its amended version 396-13 in May 2026
- Bicameral deal released June 17, 2026
- Became law July 10, 2026 without President Trump's signature
White House Posture
Trump's January 2025 executive order on digital financial technology already barred federal agencies from establishing, issuing, or promoting CBDCs except where required by law. Treasury Secretary Scott Bessent reiterated that a Fed digital dollar is off the table under the current administration. The statutory ban hardens that policy into law and outlasts the current term.
Opposition to Sunset Clause
Thirty-two House Republicans signed a letter on March 6, 2026 urging House Speaker Mike Johnson and Senate Majority Leader John Thune to remove the sunset clause and block even studies of a digital dollar. Senator Ted Cruz submitted an amendment to strike the expiry date. Rep. Anna Paulina Luna (R-FL) argued "CBDCs are bad for everyone" and pushed for a permanent ban.
Relationship to Other Legislation
The provision revives parts of the Anti-CBDC Surveillance State Act, the standalone bill championed by House Majority Whip Tom Emmer that cleared the House in earlier sessions but stalled in the Senate. Folding the language into must-pass housing legislation is what gives the current path its durability.
Why It Matters for the July 11 Digest
The CBDC ban removes the most credible long-term competitive threat to private stablecoins like USDC ($73B) and USDT ($185B), giving them a guaranteed four-year runway without government competition. The ban lands seven days before the GENIUS Act's July 18 rulemaking deadline, creating a pivotal two-week period for US digital dollar policy. The US has formally chosen private-sector digital dollars over a government-issued alternative.