Senate Advances Housing Bill With CBDC Ban, Draws White House Backing

In brief

• House conservatives pushed to fold a CBDC ban into the housing package rather than advance it as standalone crypto legislation.
• The White House formally backed the bill after the Senate vote, saying President Trump would pass the bill in its current form should it hit his desk.
• Fed officials have previously said any U.S. CBDC would require explicit congressional approval and remains exploratory.

The U.S. Senate moved forward Monday on a sweeping bipartisan housing package that includes a provision barring the issuance of a central bank digital currency, an unusual pairing that has pulled digital-asset policy into a debate traditionally focused on housing supply and affordability. Lawmakers voted 84–6 to advance the 21st Century ROAD to Housing Act, according to Semafor’s congressional bureau chief, Burgess Everett.  It’s a compromise measure that combines long-standing housing initiatives with provisions sought by House Republicans, including a prohibition on a Federal Reserve–issued digital dollar through the end of 2030. 

The CBDC language appears in a standalone section of the bill, embedding limits on a U.S. digital dollar in a major housing vehicle rather than standalone crypto legislation.  “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,” a copy of the bill’s text reads. The provision was reportedly added at the urging of House conservatives, who had pressed leadership to secure a CBDC ban as part of earlier compromises on crypto-related measures. The White House quickly issued a statement backing the legislation, highlighting both its housing affordability provisions and the CBDC restriction in an unusual step for Democrats, who have generally resisted efforts to pre-emptively bar the Federal Reserve from studying or developing a digital dollar.

“If the Senate Amendment to H.R. 6644 were presented to the President in its current form, his advisors would recommend that he sign it into law,” according to a screenshot of a White House statement provided by senior reporter and co-author of PunchbowlNews 's VAULT, Brendan Pedersen. Federal Reserve officials have previously said the central bank would not issue a CBDC without explicit authorization from Congress, and policymakers have framed ongoing work as exploratory rather than a commitment to launch a digital currency. Housing advocates have focused on the bill’s expansive scope, which includes measures to boost housing supply, limit institutional ownership of single-family homes, and streamline development and financing programs.  But the inclusion of digital-currency policy has drawn fresh attention from financial and technology circles, where debates over privacy, surveillance, and the role of government in payments remain unsettled. The bill must still be reconciled with the House before reaching the president’s desk, and it remains unclear whether the CBDC provision will survive final negotiations intact.