In a striking policy pivot, U.S. Senator Elizabeth Warren, a longtime critic of private cryptocurrencies and once a vocal advocate for a central bank digital currency (CBDC), has voted to prohibit the Federal Reserve from issuing a retail digital dollar until at least 2030. The prohibition was quietly embedded within a sweeping bipartisan housing bill—the 21st Century ROAD to Housing Act—which passed the Senate by an overwhelming 85-5 margin late Monday.
During a 2021 Senate hearing, Warren had praised CBDCs, stating they held “great promise” and could “help drive out bogus digital private money” while improving financial inclusion and efficiency. Yet the newly passed legislation explicitly bars the Fed from launching a retail CBDC without explicit congressional authorization, even after the 2030 freeze expires. Warren’s support for the housing package, which addresses affordable housing shortages and limits private equity purchases of single-family homes, marks a clear legislative compromise.
The CBDC restriction drew little public debate; the floor discussion centered on housing affordability. The provision had been added to the earlier Senate version to secure enough Republican support, as many GOP lawmakers view a government-issued digital currency as a tool for financial surveillance. Warren’s vote signals she accepted the ban as the price for advancing what she called “the most significant federal housing legislation in more than three decades.”
The practical impact may be limited, as the Federal Reserve had already paused CBDC development. President Trump’s January 2025 executive order directed agencies to stop CBDC efforts, and Fed officials repeatedly stated they would not proceed without congressional and executive approval. However, codifying the ban into law makes it far harder to reverse—a future president could not simply overturn it by executive order. The bill does not affect wholesale CBDC projects or research, and the New York Federal Reserve continues to participate in cross-border initiatives like Project Agorá.
The U.S. move stands in contrast to global trends: 146 countries representing over 98% of global GDP are exploring CBDCs, and G20 nations are in advanced stages. While Warren’s vote does not permanently abandon the CBDC concept, it temporarily shuts the door on a retail digital dollar—and does so with the support of the very senator who once championed it.
