finance
U.S. Senate Passes Housing Bill With Four-Year CBDC Ban
The Senate approved an 85-5 bipartisan housing affordability bill that includes a four-year prohibition on any U.S. central bank digital currency. The measure now heads to the House and, if enacted, would bar the Federal Reserve from issuing or creating a CBDC through 2030.
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The U.S. Senate passed a bipartisan housing affordability bill Monday night that contains a four-year prohibition on central bank digital currencies. The 21st Century ROAD to Housing Act cleared the chamber 85-5 and is expected to receive expedited House consideration before being sent to President Donald Trump for signature.
The inserted language states that the Board of Governors of the Federal Reserve System or a Federal reserve bank may not issue or create a central bank digital currency or any digital asset that is substantially similar to a central bank digital currency directly or indirectly through a financial institution or other intermediary. The ban would remain in effect until the end of 2030.
Trump signed an executive order in January 2025 that prohibited his administration from pursuing a CBDC, citing risks to financial stability, individual privacy, and U.S. sovereignty. New Fed Chair Kevin Warsh told his Senate nomination hearing that he viewed a U.S. CBDC as a bad policy choice.
The European Central Bank is advancing a digital euro with a pilot planned for next year and a potential full launch in 2029. China has already issued a digital yuan through the People's Bank of China. House lawmakers are reportedly preparing an accelerated vote on the housing bill as early as Tuesday.
