U.S. Senate Passes Bipartisan Housing Bill That Includes CBDC Ban

The U.S. Senate today passed a bipartisan bill that includes a temporary ban on a digital dollar. Lawmakers approved it in an 89–10 vote after adding language blocking the Federal Reserve from issuing a central bank digital currency. The vote sends the legislation to the House.

CBDC Ban Added to Senate Bill

According to The Hill, the CBDC ban appears in the final pages of the 302-page legislation approved by senators on Thursday. Lawmakers inserted the measure into the 21st Century ROAD to Housing Act during final negotiations. The language blocks the Federal Reserve from issuing a digital dollar until at least 2031.

The provision states the Fed may not create or issue a central bank digital currency. It also bars the central bank from launching any similar digital asset through financial institutions. The rule applies whether the currency appears directly or through intermediaries.

Republican lawmakers have pushed similar restrictions for years during digital currency debates. However, the United States has only studied a government digital token and has not launched one. Federal research programs previously examined how a digital dollar could operate alongside stablecoins.

Senators ultimately attached the CBDC ban to the larger legislative package before final approval. The decision moved the digital currency restriction forward despite the broader bill covering unrelated policy areas.

Senate Leaders Push Bipartisan Passage

Senate Banking Committee Chair Tim Scott and ranking member Elizabeth Warren spearheaded the legislation. Their proposal combined an existing Senate measure with elements from a House proposal. 

The compromise package then advanced through the Senate with overwhelming support. This package comes as the U.S. Senate pushes for a compromise on the crypto market bill, as CoinGape reported.

Senate Majority Leader John Thune expressed hope the House would accept the Senate version quickly. He said the fastest path would involve the lower chamber passing the Senate bill unchanged. However, lawmakers acknowledged that negotiations could still occur if disagreements continue.

Tim Scott defended the bill’s bipartisan support before the final vote. He said lawmakers focused on issues affecting Americans rather than party divisions. That approach helped produce the 89-10 margin in the Senate chamber.

However, several senators still opposed the legislation. Conservative lawmakers cast most of the “no” votes during the final tally. Democratic Senator Brian Schatz of Hawaii also voted against the measure.

House Resistance and Political Uncertainty

Focus now is on the House of Representatives, where lawmakers already passed a different housing package in February. That bill carries the title Housing for the 21st Century Act. However, House leaders have criticized the Senate process.

Some Republicans in the House argue the Senate drafted its bill without their input. Others say the CBDC ban should remain permanent rather than expire in 2031. Those disagreements have already led to discussions about revising the legislation. This is not the only bill with disagreements. Banks and crypto firms are not on the same page on stablecoin yield as they eye the CLARITY Act markup this month.

Representative French Hill, chair of the House Financial Services Committee, responded after the Senate vote. He said lawmakers must address concerns raised by House members. Hill added that the details require further review before any final decision.

Political complications also surround the legislation’s final approval. President Donald Trump recently said he would delay signing bills until Congress advances the SAVE Act. That voting legislation requires identification and proof of citizenship before voters cast ballots.