03.03.202611:58 Forex Analysis & Reviews: US Senate seeks to ban CBDC issuance until 2031

While the cryptocurrency market has shown considerable resilience, fully absorbing the selling pressure that followed the U.S. escalation with Iran, the US Senate is moving toward a radical step—an outright ban on the launch of a central bank digital currency (CBDC), i.e., a digital dollar.

A new bipartisan housing stimulus bill unexpectedly incorporated a provision prohibiting the Federal Reserve from issuing a digital dollar through 2031. The measure, supported by both Republicans and Democrats, reflects growing skepticism about state control over digital finance.

Sponsors of the bill, senators from key states, argue the move is necessary to protect Americans from excessive surveillance. One senator said that a digital dollar was a door to total control, in which every transaction could be tracked. The provision was grafted into the broader housing package to boost its odds of passage, sidestepping the usual standalone debates.

The White House officially backed the measure, citing serious risks to personal liberty and privacy. Administration officials warned that a CBDC could undermine confidence in the dollar as the global reserve currency and increase geopolitical threats from China, which has advanced its own digital currency efforts. The White House said that it would not allow money to be turned into a tool of surveillance.

The news had an immediate impact on the crypto market: Bitcoin jumped about 4%, signaling investor enthusiasm about reduced pressure from fiat digital assets. Critics caution, however, that a 2031 moratorium is only temporary and that the Fed could revisit the idea later. In any case, the move is a welcome development for a crypto market that has recently lacked positive catalysts.

Trading recommendations:

A technical outlook for Bitcoin suggests that buyers are targeting a return to $69,300, which would open a direct path to $71,300 and then to $74,600. The extended target is the peak near $77,100. A break above that level would indicate attempts to restore a bullish market. On the downside, buyers are expected at $67,100. A drop below that area could quickly push BTC toward $64,900, with a further downside target near $62,600.

As for Ethereum, a clear consolidation above $2,007 would open a direct route to $2,078. The extended target is the peak near $2,169. Breaching that level would strengthen bullish sentiment and renew buyer interest. If ETH falls, buyers are anticipated at $1,915. A move below that zone could rapidly send ETH down to about $1,845, with a farther downside target near $1,783.

What we see on the chart:

- Red lines indicate support and resistance levels where either a price slowdown or active growth is expected;

- Green lines indicate the 50-day moving average;

- Blue lines indicate the 100-day moving average;

- Light green lines indicate the 200-day moving average.

A crossover, or a price test of moving averages, typically either halts the move or sparks fresh market momentum.