An initiative to ban the Federal Reserve from issuing a government-run digital dollar has passed the Senate in an overwhelming bipartisan vote of 89-10, but the bill is included in a housing bill that is likely to face resistance in the U.S. House of Representatives.
Efforts to outlaw central bank digital currencies (CBDCs) have long been a favorite of Republican lawmakers, although the U.S. government has never gotten beyond the research stages of establishing government tokens that could compete with privately issued stablecoins (and compete with other CBDCs pursued by China and other jurisdictions). The Pathway to 21st Century Housing Act includes an unrelated section that bans U.S. CBDCs until at least the end of 2030.
The section, found in the final pages of the 302-page bill introduced in the Senate, declares that the Fed “shall not issue or create, directly or indirectly through a financial institution or other intermediary, a central bank digital currency or any digital asset materially similar to a central bank digital currency.”
“Financial privacy is a cornerstone of American freedom, and any decision to authorize a central bank digital currency must be decided by Congress and the American people,” Digital Chamber CEO Cody Carbone said in a statement. “We applaud the Senate for emphasizing that digital innovation in the United States should be led by the private sector while protecting individual liberties.”
But House lawmakers have signaled they may force a second Senate effort on a version, which could derail the bill’s progress. Of particular concern is the Senate bill that would force large investors in U.S. real estate, such as private equity firms, to drastically limit the number of homes they can own.
President Donald Trump himself favors the concept — one of the few areas of overlap with Democratic lawmakers.
While Trump supports efforts to make housing more widespread in the United States, he recently said he would not sign any bill into law until Congress sends him legislation requiring voters to show proof of identification and citizenship before casting their ballots in this year’s congressional midterm elections. The initiative’s path is unclear, adding to uncertainty among those advocating for the housing bill and other efforts, including a crypto market structure bill known as the Digital Asset Market Clarity Act.
