Senate Approves Housing Bill, Includes Four-Year Fed CBDC Ban

U.S. Government Stalls Digital Dollar Amid Housing Bill Passage

A U.S. moratorium on a government-issued digital dollar is unexpectedly on the verge of becoming law, attached to an unrelated housing bill.

The Senate passed the 21st Century ROAD to Housing Act on Monday night with an 85-5 vote. The bipartisan legislation aims to increase housing supply and curb the acquisition of single-family homes by large investors. Embedded within the bill is a provision that would prohibit the Federal Reserve from issuing a central bank digital currency (CBDC) until the end of 2030.

The measure explicitly states that the Fed “may not issue or create a central bank digital currency or any digital asset that is substantially similar” to one, whether “directly or indirectly through a financial institution or other intermediary.” Even after the prohibition expires in 2030, the central bank would require explicit congressional approval to proceed with a digital dollar.

The language of the bill carves out private stablecoins, exempting any “dollar-denominated currency that is open, permissionless, and private.” This leaves issuers such as Circle and Tether, which are currently regulated under last year’s GENIUS Act, unaffected.

Currently, there is no active federal initiative to develop a CBDC. The Federal Reserve has not progressed beyond the research phase, and both Fed Chair Jerome Powell and former President Donald Trump have publicly expressed opposition to a digital dollar, which critics on the right view as a tool for financial surveillance. Trump signed an executive order in January 2025 directing his administration not to pursue such a currency.

Senators characterized the vote as a rare bipartisan achievement. Banking Committee Chair Tim Scott (R-SC), who co-authored the bill with Ranking Member Elizabeth Warren (D-MA), stated on the Senate floor that “housing prices are too darn high and housing supply is too low.”

Prior to the bill’s passage, Senator Warren remarked that the outcome demonstrated “that bipartisan legislation doesn’t have to be the weakest, most milquetoast agreement.” She described the package as the most significant housing legislation in three decades, while Senate Minority Leader Chuck Schumer commented that it “shows Americans how we should govern.”

Speeches on the Senate floor primarily focused on housing supply and corporate landlords, rather than the digital dollar ban accompanying the bill. The ban was included as a political incentive to garner support from House Republicans and expedite the package’s progress. The Senate initially added the provision in March, passing that version by an 89-10 vote. Negotiators reached an agreement on the reconciled text last week after months of discussions with the House.

Some conservative members in the House have advocated for a permanent rather than a temporary freeze. Representative Anna Paulina Luna (R-FL) stated, “CBDCs are bad for everyone.” House leadership is expected to bring the bill to a vote quickly, potentially as early as Tuesday, before it moves to President Trump’s desk.

The U.S. stance against a CBDC contrasts with global trends. The European Central Bank is preparing a digital euro, with a pilot program anticipated next year and a full launch targeted for 2029. China has been expanding the cross-border usage of its e-CNY, onboarding 26 financial institutions this month, according to Reuters. Globally, three countries have launched a CBDC, and dozens more are piloting or developing one, according to the Atlantic Council.