The U.S. House and Senate have struck a bipartisan agreement on a sweeping housing bill that also bars the Federal Reserve from issuing a central bank digital currency — a so-called digital dollar — for the next six years. The measure, which still needs final passage in both chambers, prohibits any pilot program or issuance of a CBDC until at least January 1, 2030.
What the housing bill does
Lawmakers described the legislation as a broad package aimed at addressing housing affordability, supply constraints, and federal housing program reforms. While the exact provisions remain under wraps until the full text is released, the inclusion of the CBDC restriction has drawn sharp attention from financial and tech policy circles. The ban effectively freezes any government effort to create a digital dollar — a tool that would function like a digital version of cash, issued by the central bank.
Why the ban was added
Supporters of the CBDC prohibition argue that a government-issued digital currency could threaten financial privacy and give the federal government too much control over Americans' transactions. Critics of the ban, including some in the financial technology sector, say it stifles innovation and leaves the U.S. behind other countries that are already testing or rolling out digital currencies. The ban does not affect private cryptocurrencies or stablecoins, only direct central bank-issued digital money.
The 2030 timeline
By setting the cutoff at 2030, the bill gives policymakers a full six years to study the implications of CBDCs before any potential launch. The date also aligns with the end of the next presidential term, ensuring that any future decision on a digital dollar would fall to a new administration. The House and Senate are expected to vote on the final version in the coming weeks.
Next steps
Once the bill passes both chambers, it will go to the president for signature. The White House has not taken a public position on the CBDC ban, but the administration has previously expressed openness to exploring a digital dollar. The text of the agreement is expected to be published ahead of the floor votes.
