Key Highlights
- The bipartisan “21st Century ROAD to Housing Act,” advanced by an 84-6 vote, which contains a provision prohibiting the Federal Reserve from issuing a CBDC until December 31, 2030
- In a Statement of Administration Policy, the White House has raised support for the legislation
- The CBDC ban is expected to prevent a threat to “personal privacy and liberty” posed by a government-issued digital dollar
On March 2, the “21st Century ROAD to Housing Act,” introduced by Senate Banking Committee Chairman Tim Scott, a Republican from South Carolina, and Ranking Member Elizabeth Warren, a Democrat from Massachusetts, cleared its first step of the process with an impressive 84-6 vote.
U.S. Senate housing bill includes CBDC ban
— unfolded. (@cryptounfolded) March 3, 2026
Lawmakers Plan to Ban CBDC
While there are many points mentioned in this proposal, there is one particular point that has gained the attention of the crypto community and financial world.
The proposal is demanding to amend the Federal Reserve Act by adding a new section 16A. It states a central bank digital currency as a digital asset denominated in U.S. dollars that would serve as U.S. currency, which represents a direct liability of the Federal Reserve.
The proposal has mentioned a clear ban on central bank digital currency. It states that the Board of Governors of the Federal Reserve System or any 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.”
However, the ban does not apply to “any dollar-denominated currency that is open, permissionless, and private, and fully preserves the privacy protections of United States coins and physical currency.” The prohibition is expected to expire on December 31, 2030.
Scott stated in the press release, “Not only is this bill about cutting regulatory red tape, lowering costs, and expanding housing supply while generating no new spending, but it’s about making sure people like the single mom who raised me in North Charleston, South Carolina, have even greater access to economic opportunity and the American dream of homeownership.”
However, neither Scott nor Warren mentioned the digital currency provision in their public statements on this legislation process.
Warren said, “The package includes the vast majority of the Senate’s unanimously supported ROAD to Housing Act, incorporates bipartisan housing ideas from the House, and takes a good first step to rein in corporate landlords that are squeezing families out of homeownership.”
The provision to ban CBDC has been at the center of the topic for a very long time. House Republicans had previously passed an independent CBDC ban in 2025, but that bill never advanced through the Senate.
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