Legislative Status of CBDC Bans in the United
Published 6/17/2026, 3:23:55 PM
The United States has established a near-complete prohibition on government-issued central bank digital currencies through both executive action and legislation.
Executive Order (January 23, 2025): President Trump's order titled "Strengthening American Leadership in Digital Financial Technology" prohibits federal agencies from establishing, issuing, or promoting CBDCs. The White House Statement of Administration Policy from July 15, 2025, explicitly states: "The United States will never allow the creation of a central bank digital currency (CBDC) that could be used to surveil, control, or deplatform American citizens." [Source: https://www.whitehouse.gov/presidential-actions/executive-order-strengthening-american-leadership-in-digital-financial-technology/] [Source: https://www.whitehouse.gov/statement-of-administration-policy/july-15-2025/]
Anti-CBDC Surveillance State Act (H.R. 1919): The bill passed the House on July 17, 2025, by a vote of 219-210, and is currently awaiting Senate consideration after being attached to the Foreign Intelligence Accountability Act on April 29, 2026. [Source: https://www.congress.gov/bill/119th-congress/house-bill/1919]
Companion Senate Bill (S. 1124): Introduced March 25, 2025, with 8 cosponsors. [Source: https://www.congress.gov/bill/119th-congress/house-bill/1919]
GENIUS Act (S. 1582): Signed into law on July 17, 2025, establishing a federal licensing framework for payment stablecoins with stringent reserve requirements, risk management standards, and explicit exclusion of algorithmic tokens. [Source: https://www.congress.gov/bill/119th-congress/senate-bill/1582]
What the CBDC Ban Prohibits
H.R. 1919 prohibits the Federal Reserve from:
- Issuing a central bank digital currency (digital dollar)
- Offering products or services directly to individuals
- Maintaining accounts on behalf of individuals
- Using CBDC for monetary policy implementation
The legislation does not explicitly address private digital dollars or tokenized deposits, as those are governed separately under the GENIUS Act framework.
Impact on Private Stablecoin and Tokenized Asset Innovation
The legislative framework channels digital dollar innovation exclusively through private stablecoins rather than government-issued digital currency.
| Metric | Value |
|---|---|
| Current stablecoin market cap | ~$270 billion |
| Projected market size by 2028 | $2 trillion |
| Stablecoin reserves held in Treasuries | ~80% |
The ~80% of stablecoin reserves held in Treasuries creates steady demand for U.S. debt, effectively making private stablecoins a mechanism for supporting Treasury markets without government-issued digital currency. [Source: https://www.congress.gov/bill/119th-congress/house-bill/1919]
Alternative Digital Dollar Innovation Pathways
Under the CBDC ban, innovation pathways include:
| Pathway | Description |
|---|---|
| Regulated Stablecoins | Federal licensing under GENIUS Act enables compliant USDC, USDT, and new entrants |
| Blockchain Payments | 24/7/365 settlement independent of banking hours |
| DeFi Infrastructure | Permissionless financial services built on stablecoin rails |
| Tokenized Assets | Securities and real-world assets on blockchain using stablecoin settlement |
Key Stakeholder Positions
| Stakeholder | Position |
|---|---|
| White House | "The United States will never allow the creation of a CBDC that could be used to surveil, control, or deplatform American citizens" |
| American Bankers Association | CBDC is "unnecessary in the United States and would present unacceptable risks and costs to the financial system" |
| Blockchain Association | Supports H.R. 1919 |
| Heritage Action | Supports H.R. 1919 |
Fed Position: The Federal Reserve has not issued an independent institutional position beyond the executive order restrictions.
Counterpoint: 49 governments have launched formal CBDC pilots, and 100+ countries representing >95% of global GDP are exploring CBDCs. Some analysts argue the U.S. ban may cede digital currency infrastructure leadership to foreign competitors, particularly China whose digital yuan serves as a cautionary example for proponents of the ban.
Prognosis
GovTrack Analysis assigns H.R. 1919 a 37% chance of being enacted, with the current timeline uncertain pending Senate consideration. The legislation has 135 cosponsors in the House.
Conclusion
The CBDC ban reshapes digital dollar innovation by redirecting development exclusively through private-sector stablecoins regulated under the GENIUS Act, creating a ~$2 trillion market opportunity by 2028 while eliminating government surveillance capabilities. What remains open is whether Senate passage will occur and whether the 37% enactment probability will materialize before 2030.
Suggested Follow-Up Actions:
-
Monitor Senate consideration — Track H.R. 1919's progress through the Foreign Intelligence Accountability Act attachment and any amendments that could affect stablecoin regulation scope.
-
Analyze stablecoin reserve composition — With ~80% of stablecoin reserves in Treasuries, a deep dive on how GENIUS Act reserve requirements affect Treasury demand and dollar liquidity could reveal structural market implications.