The U.S. Senate has taken a significant step toward passing a sweeping bipartisan housing package that includes a provision to ban the Federal Reserve from issuing a central bank digital currency (CBDC) until at least the end of 2030. Lawmakers voted 84–6 to advance the 21st Century ROAD to Housing Act, a compromise measure that merges long-standing housing initiatives with digital-asset policy sought by House Republicans.
The CBDC prohibition is explicitly stated in Title X, Section 1001 of the 303-page bill, which reads: "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 substantially similar to a central bank digital currency, either directly or indirectly through a financial institution or other intermediary." The ban includes an exception for any dollar-denominated currency that is "open, permissionless, and private, and fully preserves the privacy protections of United States coins and physical currency."
Following the Senate vote, the White House issued a formal statement of support, indicating that President Trump's advisors would recommend he sign the bill into law if it reaches his desk in its current form. The administration highlighted both the housing affordability measures and the inclusion of provisions "to halt the development of a Central Bank Digital Currency that could pose significant threats to personal privacy and liberty." This marks an unusual alignment, as Democrats have generally resisted efforts to preemptively restrict the Fed's exploratory work on a digital dollar.
The provision was reportedly added at the urging of House conservatives, who pushed leadership to secure a CBDC ban as part of broader legislative compromises. Federal Reserve officials have previously stated that the central bank would not issue a CBDC without explicit congressional authorization, framing ongoing research as exploratory.
While housing advocates focus on the bill's core measures to boost supply and limit institutional ownership, the inclusion of digital-currency policy has drawn significant attention from financial and technology circles, reigniting debates over privacy, surveillance, and the government's role in payments. The bill must still be reconciled with the House version before final passage, and the fate of the CBDC provision in final negotiations remains uncertain.
