Housing reform bill with CBDC ban surges through U.S. Senate

The U.S. Senate delivered a decisive bipartisan blow to the prospect of a Federal Reserve–issued digital dollar on Tuesday, advancing a sweeping housing reform package that includes an explicit ban on a central bank digital currency (CBDC).

Senate tacks CBDC ban onto sweeping housing legislation

The chamber voted 84–6 to move forward with the legislation, a margin so wide that, as journalist Burgess Everett noted, “You don’t see a vote like that every day.”

The measure, titled the 21st Century ROAD to Housing Act, is a comprehensive substitute amendment to H.R. 6644 that spans dozens of housing-related reforms. The legislation was crafted by Senate Banking Committee Chairman Sen. Tim Scott and Sen. Elizabeth Warren.

While primarily focused on boosting housing supply, modernizing affordability programs, and reducing regulatory bottlenecks, the bill also contains a high-profile financial technology provision under Title X: Central Bank Digital Currency.

That section prohibits the Federal Reserve from issuing a U.S. CBDC without explicit congressional authorization. The language reflects mounting concerns among lawmakers about privacy, financial surveillance, and the potential restructuring of the banking system that could accompany a digital dollar.

Beyond the crypto-related provision, the legislation outlines reforms aimed at expanding housing inventory, strengthening rental assistance programs, promoting financial literacy, modernizing manufactured housing rules, and improving mortgage accessibility. Lawmakers behind the bill argue the package addresses systemic barriers that have constrained supply and driven up housing costs nationwide.

The overwhelming Senate vote signals rare bipartisan alignment on housing policy, though inclusion of the CBDC ban could shape negotiations as the bill moves to the House of Representatives.

If enacted, the measure would represent both one of the most significant housing reform efforts in years and a notable congressional statement on the future of U.S. digital currency policy.