US Senate Advances Housing Bill With Retail CBDC Ban Through 2030

The US Senate advanced the bipartisan 21st Century ROAD to Housing Act on Monday, a 303-page housing affordability bill that includes a provision barring the Federal Reserve from issuing a retail central bank digital currency to consumers until 2030, POLITICO reports. The two-page provision prohibits the Board of Governors of the Federal Reserve System and any Federal reserve bank from directly or indirectly issuing or creating a CBDC or substantially similar digital asset via financial institutions or other intermediaries, with the ban set to expire in less than five years. The White House said the Trump administration strongly backs the legislation and advisers would urge the president to sign it in its current form, though the expiry date has drawn criticism from those who argue it weakens Trump's previously stated opposition to a US CBDC and creates uncertainty about the long-term impact of the restriction. Supportive lawmakers have framed the CBDC provision as a response to privacy concerns that such digital currencies could facilitate government monitoring and control of individuals' financial activities, while leaving room for renewed debate after 2030.