The United States Senate took a significant step against a digital dollar issued by the Federal Reserve by advancing a sweeping housing reform package that bans the implementation of a Central Bank Digital Currency (CBDC). The bill prohibits the issuance of a digital dollar without congressional approval. This bill targets issues such as increasing supply, accessibility programs, mortgage access, and modernizing regulation.
Redaksiya reports that the bill prohibits the issuance of a digital dollar without congressional approval. This bill targets issues such as increasing supply, accessibility programs, mortgage access, and modernizing regulation.
The bill, passed by an overwhelming 84-6 vote in the Senate, garnered broad support, described as "not a vote you see every day." Dubbed the "Road to Housing for the 21st Century Act," this proposal is a comprehensive substitute amendment covering dozens of housing-related reforms. The bill was drafted by Senator Tim Scott, Chairman of the Senate Banking Committee, and Senator Elizabeth Warren.
While primarily focused on increasing housing supply, modernizing accessibility programs, and reducing regulatory barriers, the bill also includes a notable fintech provision under Title X: Central Bank Digital Currency. This section prohibits the Federal Reserve from issuing a CBDC in the U.S. without explicit authorization from Congress. This language reflects growing concerns among lawmakers regarding privacy, financial oversight, and the potential restructuring of the banking system that could accompany a digital dollar.
In addition to the cryptocurrency provision, the bill outlines reforms aimed at expanding housing reserves, strengthening rental assistance programs, promoting financial literacy, modernizing manufactured housing rules, and improving access to mortgage credit. Proponents of the bill argue that this package addresses systemic barriers that limit supply and drive up housing costs nationwide. The Senate's passage with such a large bipartisan majority is a rare sign of consensus on housing policy, but the inclusion of the CBDC ban could influence negotiations as the bill moves to the House of Representatives. If enacted, this proposal would represent both one of the most significant housing reforms in years and a substantial congressional statement on the future of U.S. digital currency policy.