A bipartisan Senate bill addressing the U.S. housing shortage has outlined when the Federal Reserve could be permitted to roll out a central bank digital currency (CBDC).
The 21st Century ROAD to Housing Act, released March 2, includes a provision temporarily barring the Fed from issuing a retail CBDC. The restriction expires at the end of 2030.
The bill, introduced by Senate Banking Committee Chairman Tim Scott and Elizabeth Warren, advanced in the Senate with an 84–6 procedural vote, clearing the way for full debate. Notably, the White House has backed the package, largely due to its housing reforms.
The legislation focuses on expanding housing supply and improving affordability. It streamlines environmental reviews, modernizes manufactured housing standards, updates federal multifamily financing programs, reforms the HOME Investment Partnerships and Community Development Block Grant programs, and limits large institutional investors’ purchases of single-family homes.
Indeed, title X of the 303-page bill amends the Federal Reserve Act to prohibit the Federal Reserve and its regional banks from issuing a retail CBDC or any substantially similar digital asset.
“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 that is substantially similar to a central bank digital currency directly or indirectly through a financial institution or other intermediary,” the bill said.
The prohibition includes a sunset clause expiring December 31, 2030. After that, the Fed could proceed with a retail CBDC in 2031 unless Congress extends the ban or imposes new restrictions.
Digital dollar status
It’s worth noting that the U.S. CBDC landscape remains stalled, with no active retail pilots or issuance plans.
The Federal Reserve has said it would not proceed without clear support from the executive branch and Congress, preferably through authorizing legislation.
Globally, more than 130 countries are exploring or advancing CBDCs, including China’s expanded digital yuan with interest-bearing and cross-border features.
Interestingly, in January 2025, President Donald Trump signed an executive order barring federal agencies from establishing, issuing, or promoting a CBDC, citing risks to financial stability, privacy, and national sovereignty.
The order revoked prior digital asset directives and instead supported private-sector innovations such as dollar-backed stablecoins and blockchain technologies through a new digital assets working group.
The CBDC provision mirrors language from earlier failed legislative efforts and reflects a compromise between Republicans concerned about surveillance risks and Democrats supporting the broader housing package.
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