U.S. Senate Housing Bill Includes Temporary CBDC Prohibition

• Senate housing bill advances with temporary Fed retail CBDC ban through 2030.
• Proposal bars the Federal Reserve from issuing a retail CBDC directly or through intermediaries.
• Narrow privacy carveout excludes open, cash-like digital assets from the ban.

The U.S. Senate has advanced a major housing affordability package that includes a temporary prohibition on the Federal Reserve issuing a retail central bank digital currency (CBDC). The provision is embedded in the 303-page “21st Century ROAD to Housing Act,” which cleared a key procedural vote by an 84-6 margin on a motion to proceed, limiting debate and opening the measure to full Senate consideration.

The housing bill, described by lawmakers as a comprehensive bipartisan effort to expand housing supply and lower costs, contains CBDC language in Title X, Section 1001. The proposal would amend the Federal Reserve Act by adding a new section titled “SEC. 16A. CENTRAL BANK DIGITAL CURRENCY.”

Under the text, the Federal Reserve is barred from issuing or creating a CBDC, or any substantially similar digital asset, either directly to consumers or indirectly through financial institutions or intermediaries. The measure defines a CBDC as a digital asset denominated in U.S. dollars that qualifies as U.S. currency, represents a direct liability of the Federal Reserve System, and is widely available to the general public.

The bill further clarifies that the term “digital asset” carries the same meaning as defined in Section 2 of the GENIUS Act (12 U.S.C. 5901). The language is structured to prevent the creation of a retail, consumer-facing digital dollar issued as a direct central bank liability.

Scope, Exception, and Sunset Provision

The prohibition includes a narrow exception for any dollar-denominated currency that is open, permissionless, private, and fully preserves the privacy protections associated with U.S. coins and physical currency.

The carveout indicates that certain private-sector or open blockchain-based systems would not be automatically restricted if they meet those privacy standards. The ban is not permanent. The legislation states that the CBDC restriction will expire on Dec. 31, 2030, unless Congress acts to extend or modify it.

Political and Policy Context

The CBDC language was previously excluded from last year’s National Defense Authorization Act discussions, but has resurfaced in the housing package. House Republicans reportedly pressed for its inclusion. The White House has declared support for the legislation, highlighting both housing measures and the CBDC-related provision.

In addition, Federal Reserve officials have previously stated that a digital dollar would not be issued without explicit congressional authorization. If enacted, the bill would formally restrict the central bank from introducing a retail CBDC for the remainder of the decade, pending further legislative action.

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