Summary
- Updated text for the 21st Century ROAD to Housing Act has been released, which prohibits the Federal Reserve from issuing a CBDC until December 31, 2030.
- The agreement includes a three-year sunset for a disaster-recovery block grant program and incorporates House priorities, such as restrictions on institutional homebuyers and nine community banking bills.
- Although the text is returning to the Senate, certain House conservatives are advocating for a permanent CBDC ban.
On Tuesday, leaders from the Senate Banking and House Financial Services committees unveiled revised text for comprehensive housing legislation that also includes a temporary prohibition on a U.S. central bank digital currency.
This legislative package, known as H.R. 6644, aims to enhance housing supply, reduce costs, and prevent institutional investors from displacing families in the single-family market. Within the bill, there is a clause stating that the Fed is prohibited from issuing or creating a central bank digital currency or any similar asset until December 31, 2030, with an exception for open, permissionless private dollar assets like stablecoins, which maintain the privacy protections of U.S. coins and physical currency.
Senate Banking Chair Tim Scott (R-SC), Ranking Member Elizabeth Warren (D-MA), House Financial Services Chair French Hill (R-AR), and Ranking Member Maxine Waters (D-CA) indicated that the 21st Century ROAD to Housing Act reflects extensive bipartisan and bicameral efforts, incorporating priorities from the Senate, House, and White House. Scott emphasized the need to "deliver real relief for the American people," while Warren described it as the most significant housing bill in over three decades.
To finalize the agreement after prolonged negotiations, the Senate accepted a three-year sunset for a disaster-recovery block grant program and included measures from the House, such as nine community banking bills and restrictions on institutional homebuyers, as noted by Hill stated. He expressed hope for President Trump to sign the legislation into law. Waters pointed out that the text comprises over 50 housing and banking provisions that Democrats fought to include.
The anti-CBDC provision was introduced at the request of House Republicans, and the Trump administration has supported it, with Treasury Secretary Scott Bessent having recently reiterated that a digital dollar is not being considered. CBDCs, which are government-backed digital cash alternatives, have become a contentious issue, with opponents warning they could lead to financial surveillance. Some House conservatives, including Rep. Anna Paulina Luna (R-FL), advocate for a permanent ban, arguing that "CBDCs are detrimental for everyone."
The Senate initially included the CBDC ban in March, passing the package with a vote of 89-10; the House approved its amended version with a 396-13 vote in May. The revised text is now set to return to the Senate floor.