A group of Republican lawmakers is pushing for a permanent ban on a US central bank digital currency, or CBDC, as part of a housing bill expected to hit the House floor this week.
The 21st Century ROAD to Housing Act, originally released by the Senate Banking Committee in March, mainly focuses on federal housing program reforms. But it includes a section that would stop the Federal Reserve or any Fed bank from issuing a CBDC until December 31, 2030. That’s a temporary ban, not a permanent one.
The House has now written its own version of the bill, and Congressman Mike Flood said this amended version gets rid of what he called a “backdoor green light for a CBDC.” Instead, it aims to make the ban permanent. If the House approves it, the bill goes back to the Senate, where it could face more changes. Both chambers need to pass it before it lands on President Donald Trump’s desk for a signature.
Permanent ban needed, says Davidson
Representative Warren Davidson, another Republican, backed the idea of a permanent ban. He argued that the current 2030 sunset clause effectively gives a green light for development work before the ban expires. “The US House of Representatives could deliver a unifying win this week with bipartisan housing affordability legislation. Instead, they currently plan to deliver a go-live date for Central Bank Digital Currency, using housing as the Trojan Horse,” Davidson said.
Critics of CBDCs have long raised concerns about privacy and misuse. The Human Rights Foundation noted that while CBDCs might help expand financial access for unbanked populations, they also risk infringing on privacy and opening up new avenues for government corruption. Globally, the Atlantic Council tracker shows only three countries—Nigeria, Jamaica, and the Bahamas—have officially launched a CBDC, with 41 others in pilot phases.
Alternate CBDC bills still in play
Meanwhile, House Majority Whip Tom Emmer is pushing his own standalone bill, the Anti-CBDC Surveillance State Act. That bill passed the House back in July but is still waiting for Senate approval. Emmer has been vocal about his concerns, comparing a US CBDC to China’s digital yuan. “The Chinese Communist Party uses a central bank digital currency to surveil and control its people. If the US adopted its own CBDC, privacy and economic freedom as we know it would cease to exist,” he said.
Senator Mike Lee also introduced the No CBDC Act, a standalone bill that would bar the Fed or Treasury from issuing a digital dollar. But that bill has stalled in Congress. With the housing bill moving forward, the debate over a US CBDC is likely to heat up again, even if the main focus remains on housing policy.
