An initiative to ban the U.S. central bank from issuing a government-run digital dollar has been approved in an overwhelming bipartisan vote of 89-10 in the Senate, but it is tucked inside a housing bill that could run into headwinds in the U.S. House of Representatives.
The effort to ban a central bank digital currency (CBDC) has long been a favorite of Republican lawmakers, although the US government has never advanced beyond the research stage to establish a government token that could compete with privately issued stablecoins (and compete with other CBDCs being pursued by China and other jurisdictions). The 21st Century ROAD to Housing Act included an unrelated section banning US CBDCs until at least the end of 2030.
The section, in the final pages of the 302-page bill introduced by the Senate, states that the Fed “may not issue or create a central bank digital currency or any digital asset that substantially resembles a central bank digital currency directly or indirectly through a financial institution or other intermediary.”
“Financial privacy is a cornerstone of American freedom, and any decision to authorize a central bank digital currency must rest with Congress and the American people,” Digital Chamber CEO Cody Carbone said in a statement. “We appreciate the Senate reinforcing that digital innovation in the United States should be led by the private sector while protecting individual freedom.”
But lawmakers in the House have signaled they may force another effort on the Senate version, which could disrupt the bill’s progress. A particular problem is the Senate bill that would force major investors in American housing, such as private equity firms, to sharply limit the number of homes they can own.
President Donald Trump himself has favored this concept — one of the few areas of overlap with Democratic lawmakers.
Although Trump has supported efforts to make housing more affordable in the United States, he recently stated that he will not sign any bills until Congress sends him legislation that would require voters to present identification and proof of citizenship before casting ballots in this year’s subsequent midterm congressional elections. The path to this initiative is unclear, adding to uncertainty for those in favor of the housing bill and other efforts, including the crypto market structure bill known as the Digital Asset Market Clarity Act.
