Key Takeaways
- The US Senate’s housing reform package contains language preventing the Federal Reserve from launching a CBDC through December 31, 2030
- Senate Banking Committee Chair Tim Scott and Ranking Member Elizabeth Warren jointly introduced the legislation in an unusual cross-party effort
- White House officials released a statement endorsing the legislation and specifically supporting the CBDC prohibition due to privacy and freedom concerns
- An 84–6 procedural vote advanced the bill, demonstrating widespread bipartisan backing
- The prohibition exempts stablecoins that maintain open, permissionless structures and preserve cash-like privacy features
New legislation moving through the US Senate targeting housing reform contains a little-noticed section that would prevent the Federal Reserve from launching a central bank digital currency (CBDC) before 2031.
The measure, formally titled the “21st Century ROAD to Housing Act,” received bipartisan introduction Monday from Senate Banking Committee Chair Tim Scott alongside Ranking Member Elizabeth Warren. Within the 303-page document, the CBDC restriction occupies merely two pages.
Lawmakers advanced the bill through a critical procedural cloture motion with an 84–6 tally, positioning it for comprehensive Senate floor discussion. Such overwhelming support demonstrates rare agreement spanning both political parties.
The White House released official backing for the measure. Its statement explicitly highlighted the CBDC restriction, arguing that a government-issued digital dollar might “pose significant threats to personal privacy and liberty.”
Under the proposed language, the Federal Reserve and all Federal Reserve banks would be barred from launching a CBDC “directly or indirectly through a financial institution or other intermediary.” This moratorium includes an expiration provision effective December 31, 2030.
Once that deadline passes, lawmakers would need to pass fresh legislation to maintain the restriction. Congressional action would be required to either extend the timeframe or establish a permanent prohibition.
Scope and Exemptions
The legislation creates a specific exemption for stablecoins. Digital currencies pegged to the dollar that maintain “open, permissionless, and private” characteristics and uphold the privacy standards of physical currency would remain permissible.
Neither Senator Scott nor Senator Warren addressed the CBDC language in their public remarks surrounding the bill. Both legislators emphasized housing accessibility and regulatory modernization instead.
Earlier Congressional Efforts Against CBDCs
Congressional attempts to prevent a digital dollar predate this legislation. Senator Mike Lee put forward the “No CBDC Act” in February 2025, though it failed to advance.
Representative Tom Emmer introduced the “Anti-CBDC Surveillance State Act” in June 2025. The House approved that measure on July 17, 2025, though it remains pending in the full Senate.
The present housing package resurrects identical language and incorporates it into legislation commanding wider political consensus.
Internationally, just three nations have completely implemented a CBDC: Nigeria, Jamaica, and The Bahamas. An additional 49 countries, including China, Russia, India, and Brazil, are conducting active digital currency trials.
The European Union maintains an ongoing pilot program. Germany’s central banking chief expressed public endorsement for a digital euro in February.
The US Senate housing measure now awaits a complete floor vote, with the CBDC prohibition intact as drafted.
