Senate passes housing bill banning Fed from issuing CBDC

The Senate on Monday approved a bipartisan housing package designed to make homes more affordable and reduce competition from large investment firms.

The bill, known as the 21st Century ROAD to Housing Act, passed by a wide 85-5 margin and now awaits action in the House. One of its provisions would prohibit the Federal Reserve from issuing a US central bank digital currency (CBDC) for four years, extending through the end of 2030.

The measure was championed by Republicans who have long warned that a government-backed digital currency could compromise privacy and enable greater financial surveillance. Their concerns led them to add the restriction to the housing affordability package.

Ex-CFTC chairman says US continues behind-the-scenes CBDC work

Former CFTC Chairman Timothy Massad said the US government is privately evaluating CBDC-related infrastructure despite maintaining a public stance against issuing a digital dollar.

At the Digital Money Summit 2026, he said the country continues to participate in global digital settlement projects, including Project Agora, although Fed officials have stopped short of endorsing a US CBDC.

There is currently no active federal plan to create a US CBDC. Fed officials have previously indicated that any digital dollar would require support from Congress and the White House, and both Fed Chair Kevin Warsh and President Trump have publicly opposed the idea.

Massad said the growing adoption of stablecoins and tokenized financial markets could eventually change that trajectory.

Effort to make homes more affordable for families

A centerpiece of the legislation would prevent large institutional investors from purchasing single-family homes, addressing concerns that corporate buyers have contributed to rising housing costs.

The proposal would encourage the construction of new homes through funding programs, faster approval processes, and fewer regulatory hurdles.

The bill was negotiated by senior Democrats and Republicans after months of talks to reconcile differences between separate House and Senate versions. Both parties have claimed victories; Republicans point to measures that increase the housing supply, while Democrats emphasize protections against corporate ownership of residential housing.

The legislation comes as housing affordability and the broad cost of living remain major concerns for Americans. The Trump administration supports the bill, calling it part of the president’s efforts to improve access to homeownership.

If the House approves the measure in the coming days, it could become one of the most important bipartisan laws enacted during Trump’s second term.