Treasury Secretary Scott Bessent again said today that there will be no U.S. central bank digital currency under the Trump administration. He repeated that he sees “no reason for the U.S. to have a central bank digital currency” and has argued that a CBDC is “for countries who have no other investment alternative.” Instead, he has pointed to dollar stablecoins and private digital money as the better path for a strong U.S. financial system.
Fed Chair Kevin Warsh has taken a similar stance in his confirmation process. In April, he told senators the Federal Reserve lacks “clear legal authority” to issue a CBDC and called such a move a “bad policy choice.” He also said he would not let the Fed move toward a CBDC “if it is within my power to stop it,” when pressed by lawmakers.
ROAD To Housing Act Builds A Temporary Wall
Meanwhile, Congress attached the CBDC issue to a big housing bill. The 21st Century ROAD to Housing Act contains wording that prevents the Fed and its banks from launching “a central bank digital currency, or any digital asset that is substantially similar,” until Dec. 31, 2030. The Senate passed the plan by an overwhelming 84-6 vote, and the White House has said it supports the measure, but the House and Senate still need to agree on final language.
The restriction comes with a “sunset” clause, which means the ban would automatically expire at the end of 2030 unless Congress renews it. Because of that date, some House Republicans now describe the expiration as a kind of “go live” window for a future CBDC, since it could reopen space for the Fed to study or test one under a different president. They have pushed to strip the sunset and replace it with a permanent ban, arguing that any gap would undermine today’s promises.
However, Senate Republican Leader John Thune has warned that those efforts will likely run into resistance from Democrats. According to reports on the talks, House conservatives “will not accept” a temporary ban, while many Senate Democrats are unwilling to lock in a forever prohibition. Therefore, the final version of the ROAD to Housing Act could become a test of how far both parties are ready to go on CBDCs right now.
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