The goal of the legislation is to increase housing supply, reduce regulatory barriers, and support homeownership, while the CBDC restriction aligns with the current administration's stance on digital currencies. The bill is expected to proceed to a Senate procedural vote before moving to the House of Representatives.
US lawmakers have reached a bipartisan agreement on a major housing package that also contains a provision banning the issuance of a central bank digital currency (CBDC) in the United States through the end of the decade.
The updated legislation is known as the "21st Century ROAD to Housing Act," and was unveiled by Senator Tim Scott, Senator Elizabeth Warren, Representative French Hill, and Representative Maxine Waters after negotiations between the Senate and House of Representatives. The bill is primarily focused on addressing housing affordability challenges across the country by increasing housing supply, reducing regulatory burdens, and preventing large corporate landlords from exerting excessive control over the housing market.
Joint statement released by the US Senate Committee on Banking, Housing and Urban Affairs
Lawmakers describe the bill as a comprehensive effort to make homeownership more attainable for Americans while also providing relief to communities struggling with housing shortages and rising costs. One of the compromises included in the latest version of the legislation is a three-year sunset provision for a disaster relief program, which was added to address concerns raised by House lawmakers during negotiations.
While the housing provisions form the core of the legislation, the bill attracted attention from the digital asset industry because it includes language prohibiting the Federal Reserve from issuing, creating, or implementing a central bank digital currency. The restriction would also apply to any digital asset deemed substantially similar to a CBDC and would stay in effect until Dec. 31, 2030.
The inclusion of a CBDC ban in a housing bill is an unusual legislative move, but it is part of a more common strategy in Washington where unrelated policy measures are attached to larger pieces of legislation that have more political support. House Republicans reportedly pushed for the anti-CBDC language to be included as part of the final agreement.
The provision aligns with the current Trump administration's position on digital currencies. Treasury Secretary Scott Bessent recently stated that CBDCs are not being considered by the administration and policymakers are instead focused on advancing digital asset legislation like the Clarity Act.
The bill is now expected to move through the legislative process, beginning with a procedural vote in the Senate. If approved, it will advance to the House of Representatives for another vote after lawmakers return from recess later this month.
