The U.S. Senate has passed a landmark housing bill that includes a controversial provision to prohibit the issuance of central bank digital currency (CBDC) until 2030.
On Tuesday, the Senate approved the bipartisan Road to Housing Act with an overwhelming majority of 85-5. This legislation aims to stabilize housing prices and expand housing supply.
While primarily focused on housing issues, the bill unexpectedly incorporates a ban on CBDC issuance.
The legislation stipulates that the Federal Reserve is barred from issuing CBDC or similar digital assets, either directly or indirectly, until 2030. Notably, stablecoins are exempt from this prohibition.
Moreover, even after 2030, the Federal Reserve would need explicit congressional approval to introduce a CBDC.
The bill now heads to the House of Representatives for a vote. Given that leadership in both chambers has already reached a consensus on the bill’s content, swift passage in the House is expected.
Once signed by the President, the legislation will take effect, potentially reshaping the landscape of both housing policy and digital currency regulation in the U.S.