House and Senate Reach Agreement on Housing Legislation with CBDC Ban Until 2030

Housing Legislation Unveiled with CBDC Ban

In a significant development, leaders from the Senate Banking Committee and House Financial Services Committee have announced a revised housing bill that imposes a ban on the issuance of a U.S. central bank digital currency (CBDC) until the end of 2030. This legislation, designated as H.R. 6644, aims to improve housing supply and affordability while preventing institutional investors from monopolizing the single-family market.

The bill specifically prohibits the Federal Reserve from creating a CBDC or similar assets during this period, though it allows for open, permissionless private dollar assets, such as stablecoins, which continue to protect the privacy features of traditional U.S. currency.

Key Provisions and Bipartisan Support

Senate Banking Chair Tim Scott, House Financial Services Chair French Hill, and other key lawmakers have emphasized the bipartisan nature of the legislation. Scott reiterated the need for "real relief for the American people," while Elizabeth Warren described it as the most important housing legislation in over thirty years. The agreement reflects contributions from both chambers of Congress and the White House.

Among its provisions, the bill includes a three-year sunset clause for a disaster-recovery block grant program and additional measures targeting institutional homebuyers. House Democrats successfully advocated for over 50 housing and banking provisions to be incorporated into the legislation.

Contention Over CBDC Ban

The CBDC ban, which originated from House Republicans, has gained traction with support from the Trump administration. Critics of CBDCs argue that they pose risks to privacy and financial freedom. Some House conservatives are pushing for a permanent prohibition on any future CBDC, arguing that they pose significant risks to the public.

The Senate previously included the CBDC ban in March, passing the initial bill with overwhelming support of 89-10, while the House later approved an amended version by a vote of 396-13. The latest revisions will now go back to the Senate for further consideration.