The US Senate passed a sweeping housing bill on Monday that includes a ban on the Federal Reserve creating a central bank digital currency — or anything resembling one — until 2030. The vote was 85-5.
The 21st Century Road to Housing Act is meant to boost housing supply after bipartisan leaders struck a deal last week to push it forward. The CBDC ban has been baked into the Senate version since March. It bars the Fed from issuing or developing a CBDC or any “substantially similar” digital asset.
Crypto advocates have pushed back on CBDCs for years, arguing they put government-controlled digital currency directly in consumers’ hands. Republicans have tried to ban CBDCs before, and this time it finally stuck — tacked onto a housing bill as a political sweetener to win House GOP and White House support.
There’s a carve-out, though. Stablecoins — defined here as “dollar-denominated currency that is open, permissionless, and private” — aren’t affected. And even after 2030, the Fed would need explicit congressional authorization before touching a CBDC.
Meanwhile, other countries aren’t waiting. Reuters reported last week that China just signed up 26 financial institutions to its digital yuan cross-border payment platform. According to the Atlantic Council, three countries have already launched a CBDC, 41 are running pilots, and dozens more are in development or research phases.
The bill now heads to the House, where it’s expected to pass quickly before landing on the president’s desk.
