House, Senate Agree on Housing Bill, Ban CBDC Until 2030

Housing Bill Includes Temporary Ban on Central Bank Digital Currency

Leaders of the Senate Banking and House Financial Services committees on Tuesday unveiled updated text for a comprehensive housing bill that includes a temporary prohibition on the U.S. issuing a central bank digital currency.

The legislation, H.R. 6644, known as the 21st Century ROAD to Housing Act, aims to increase housing supply, reduce costs, and prevent institutional investors from displacing families in the single-family housing market. A provision within the bill stipulates that the Federal Reserve “may not issue or create a central bank digital currency” or any similar asset until December 31, 2030. This ban includes an exception for open, permissionless private dollar assets, such as stablecoins, that maintain the privacy protections afforded by U.S. coins and physical currency.

The bill represents years of bipartisan and bicameral collaboration, incorporating priorities from both chambers of Congress and the White House, according to Senate Banking Chair Tim Scott (R-SC), Ranking Member Elizabeth Warren (D-MA), House Financial Services Chair French Hill (R-AR), and Ranking Member Maxine Waters (D-CA). Senator Scott stated it was time to “deliver real relief for the American people,” while Representative Waters described it as the most significant housing legislation in over three decades.

Following months of negotiations, the Senate agreed to a three-year sunset clause for a disaster recovery block grant program and adopted several House-approved measures. These include nine community banking bills and language designed to limit institutional homebuyers. Representative Hill expressed anticipation for President Trump to sign the bill into law. Representative Waters noted that the text incorporates over 50 housing and banking provisions that Democrats advocated for.

The provision restricting a central bank digital currency was added at the request of House Republicans, and the Trump administration has supported it. Treasury Secretary Scott Bessent recently reaffirmed that a digital dollar is not under consideration.

Central bank digital currencies (CBDCs), which are digital equivalents of government-issued cash, have emerged as a contentious issue. Critics warn that CBDCs could facilitate financial surveillance. Some conservative House members, including Representative Anna Paulina Luna (R-FL), are pushing for a permanent ban, arguing that “CBDCs are bad for everyone.”

The Senate initially attached the CBDC ban to a package in March, passing it by a vote of 89-10. The House subsequently cleared its amended version in May with a 396-13 vote. The updated text is now scheduled for consideration on the Senate floor.