Bipartisan Housing Bill Would Delay Fed Digital Dollar Rollout / Fresh Today / CUToday.info

WASHINGTON—A bipartisan Senate bill aimed at addressing the nation’s housing shortage would temporarily block the Federal Reserve from issuing a retail central bank digital currency, according to reporting by Finbold.

The 21st Century ROAD to Housing Act, released March 2, includes a provision that would prohibit the Fed and regional Federal Reserve banks from creating or issuing a retail CBDC or any substantially similar digital asset. The restriction would remain in place through Dec. 31, 2030, according to Finbold.

The legislation, introduced by Senate Banking Committee Chairman Tim Scott (R-SC) and Elizabeth Warren (D-MA), cleared an initial procedural hurdle in the Senate with an 84–6 vote, advancing the bill toward full debate. Finbold noted the White House has signaled support for the broader package due largely to its housing supply reforms.

While the bill’s primary focus is housing policy, Finbold reported that Title X of the 303-page measure amends the Federal Reserve Act to bar the Fed from issuing a retail CBDC either directly or indirectly through financial institutions or other intermediaries.

“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 states.

The prohibition includes a sunset clause, meaning the Fed could move forward with a retail CBDC beginning in 2031 unless Congress extends the ban or imposes new restrictions.

According to Finbold, the U.S. digital dollar effort remains largely stalled, with no active retail pilots or issuance plans. The Federal Reserve has repeatedly said it would not proceed without clear backing from both Congress and the executive branch.

Meanwhile, Finbold noted that more than 130 countries are researching or developing CBDCs, including China, which continues expanding its digital yuan program with features such as cross-border functionality and interest-bearing capabilities.