U.S. Senate advances housing bill with CBDC ban until 2030

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U.S. Senate blocks CBDC plan

Highlights

The U.S. Senate advanced a housing bill that includes a CBDC ban through 2030.
The measure passed 84–6 and restricts the Federal Reserve from issuing a digital dollar.
The White House backed the proposal, while private stablecoins remain allowed.

The “Road to Housing in the 21st Century Act” cleared a key procedural vote 84–6. While the bill primarily focuses on expanding housing supply and curbing the dominance of corporate landlords, its final section places restrictions on the Federal Reserve.

Ban on a digital dollar

The 303-page bill was introduced by Senate Banking Committee Chair Tim Scott and Ranking Member Elizabeth Warren.

“This legislation is not only about cutting red tape, lowering costs, and increasing housing supply without increasing government spending, but also about expanding access to economic opportunity and the American dream of homeownership for people like the single mother who raised me in North Charleston, South Carolina,” Scott said.

Warren stated that the package “includes the vast majority of provisions from the unanimously passed ROAD to Housing Act, incorporates bipartisan housing ideas from the House, and represents a good first step toward reining in corporate landlords who are pushing families out of homeownership.”

The text states: “Except as provided in subsection (c), the Board of Governors of the Federal Reserve System or any Federal reserve bank may not issue or create a central bank digital currency or any digital asset substantially similar to a central bank digital currency, directly or indirectly through a financial institution or other intermediary.”

The restriction runs through Dec. 31, 2030. An exception allows open, permissionless and private dollar-denominated digital assets that preserve the privacy protections associated with physical cash.

The White House backed the measure, stating: “The Administration emphasizes the importance of including among the President’s priorities… measures to prevent the development of a central bank digital currency that could pose a significant threat to personal privacy and freedom.”

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Political and global context

The Federal Reserve has previously said it would not issue a digital dollar without explicit congressional authorization. The proposed ban would formally codify that pause. Opposition to a CBDC has been championed by some Republicans as a privacy issue and a limit on government control over payments.

Globally, the trend differs. According to the Atlantic Council, CBDCs have already launched in Nigeria, the Bahamas and Jamaica, while dozens of countries — including China and India — continue pilot programs.

If the provision remains in the final version after reconciliation with the House, the United States would effectively freeze the idea of a digital dollar until at least the end of the decade, while leaving room for private stablecoins.

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