Senate votes to ban U.S. CBDC in housing bill; House outlook uncertain

The Senate approved a bipartisan housing bill that includes an unrelated ban on a U.S. central bank digital currency, passing the measure 89-10. The restriction appears in the final pages of the 302-page 21st Century ROAD to Housing Act. The provision declares the Federal Reserve "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." Republicans have long backed a CBDC ban, though the U.S.

government has not moved beyond the research stage for a government-run digital token that could compete with privately issued stablecoins or rival other CBDCs pursued by China and other jurisdictions. The bill could face trouble in the House, where some lawmakers have signaled they may force a second effort at the Senate text, potentially disrupting the measure's progress.

United States

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