Catenaa, Wednesday, March 11, 2026– Congress is moving closer to a permanent ban on a Federal Reserve digital dollar, with lawmakers considering language that could be inserted into a major housing bill, according to a research note from TD Cowen.
The proposal would convert a temporary prohibition into a lasting restriction and could receive a Senate vote this week.
Sen. Ted Cruz introduced an amendment targeting the 21st Century ROAD to Housing Act. The measure would extend an existing restriction and make the prohibition permanent beginning in 2030. TD Cowen analyst Jaret Seiberg said the provision has a strong chance of passing Congress and reaching the president’s desk next month.
Ted Cruz is a Republican US senator from Texas and a leading conservative voice in Congress. Ted Cruz first won election to the Senate in 2012 after serving as Texas solicitor general and arguing major cases before the US Supreme Court.
In Congress he focuses on constitutional law, energy policy, and financial regulation. Cruz has taken a strong position on digital currency policy, often opposing a Federal Reserve central bank digital currency while supporting private crypto innovation.
Federal Reserve officials have repeatedly said the central bank has no immediate plans to launch a central bank digital currency. Fed Chair Jerome Powell told lawmakers that any digital dollar would require explicit authorization from Congress before development or issuance.
Several lawmakers backing the ban say privacy concerns drive the effort. Rep. Ralph Norman urged stronger language in the legislation, arguing a government-issued digital currency could allow authorities to monitor consumer spending and financial activity. The House previously passed the Anti-CBDC Surveillance State Act, which would block the Fed from issuing a digital currency directly to consumers.
TD Cowen said stablecoin issuers could benefit from a permanent prohibition because it removes the possibility of a competing government digital currency.
The global stablecoin market has grown to about $250 billion, led by Tether’s USDT at roughly $140 billion in circulation and Circle’s USDC near $60 billion. Congress is also debating stablecoin legislation, including the GENIUS Act and the Clarity for Payment Stablecoins Act, both intended to set reserve and oversight requirements.
The broader digital currency debate continues worldwide. China’s digital yuan has reached hundreds of millions of wallets and processed large transaction volumes, while the European Central Bank continues testing a digital euro.
Other projects include the Bahamas’ Sand Dollar, Nigeria’s eNaira, and Sweden’s e-krona pilot.
Banking groups remain cautious about digital currencies, citing risks from crypto market failures such as FTX and Celsius and ongoing regulatory disputes over crypto banking charters and Federal Reserve payment system access.
Central banks globally continue researching digital currencies even as US lawmakers debate limits. The Bank for International Settlements estimates more than 90 percent of central banks study CBDCs, with several wholesale and cross-border pilots underway.
In the United States, the debate centers on balancing innovation, financial stability, and consumer privacy while preserving the traditional banking system and the role of private stablecoins.
TD Cowen is a Washington research and financial services firm that tracks US policy affecting banking, technology, and financial markets. The firm is part of TD Cowen, which produces policy analysis widely followed by Wall Street investors.
Its Washington Research Group studies legislation, regulatory changes, and congressional activity that could influence industries such as banking, cryptocurrency, defense, and healthcare.
