U.S. Senate housing bill includes CBDC ban

The Senate Committee on Banking, Housing and Urban Development has incorporated a provision into its bipartisan "21st Century ROAD to Housing Act" that temporarily prohibits the Federal Reserve from issuing a central bank digital currency (CBDC). The bill, introduced by Committee Chairman Tim Scott and Ranking Member Elizabeth Warren, aims to streamline housing construction in the U.S. by reducing regulatory burdens and costs, without introducing new spending.

Senator Scott stated the bill is designed to enhance economic opportunity and the dream of homeownership, particularly for individuals like his mother who grew up in North Charleston, South Carolina. Senator Warren highlighted that the package includes most of the Senate's unanimously supported ROAD to Housing Act, integrates bipartisan housing proposals from the House, and begins to address the issue of corporate landlords impacting families' ability to own homes.

CBDC Ban Details

While neither Scott nor Warren specifically mentioned the CBDC ban in their statements, the provision spans two pages of the 303-page bill. This is not the first time such a ban has been proposed; the House of Representatives previously passed it as a standalone bill. The current provision states that the Board of Governors of the Federal Reserve System or any Federal Reserve bank may not issue or create a CBDC or a substantially similar digital asset, directly or indirectly, before December 31, 2030. An exception is made for permissionless, private dollar-denominated currencies that fully maintain the privacy protections of physical currency.

The White House issued a Statement of Administration Policy supporting the bill, explicitly endorsing the CBDC provision. The statement indicated that the Administration supports halting the development of a CBDC due to potential significant threats to personal privacy and liberty.