Republican Lawmakers Advocate for Permanent CBDC Ban in Housing Legislation
A group of Republican lawmakers is pushing for a permanent ban on the issuance of a U.S. central bank digital currency (CBDC) to be incorporated into the 21st Century ROAD to Housing Act. The House is expected to vote on this amended legislation this week. The original bill, released by the U.S. Senate Committee on Banking, Housing, and Urban Affairs in March, primarily addresses revisions to federal housing programs. However, it includes a provision that prohibits the Federal Reserve System or any Federal Reserve bank from issuing a CBDC or similar instrument until December 31, 2030. (cointelegraph.com)
Background on CBDC Legislation
The debate over CBDCs in the United States has intensified in recent years. In March 2026, the Senate voted to include an amendment in the 21st Century ROAD to Housing Act that would prohibit the Federal Reserve from issuing a CBDC until December 31, 2030. This amendment was part of a broader housing affordability legislation. (cointelegraph.com) However, some lawmakers argue that a temporary ban is insufficient. In a letter dated March 6, 2026, 28 Republican members of the House of Representatives urged House Speaker Mike Johnson and Senate Majority Leader John Thune to make the CBDC prohibition permanent, expressing concerns that a temporary ban would not adequately protect Americans from potential financial surveillance. (cointelegraph.com)
Key Details
Representative Mike Flood has introduced an amendment to the House version of the 21st Century ROAD to Housing Act, aiming to make the CBDC ban permanent. Flood stated that the original bill provided a “backdoor green light for a CBDC,” and his amendment seeks to reverse this by ensuring a permanent prohibition. (cointelegraph.com) The amended legislation is expected to be voted on in the House this week. If passed, it will return to the Senate, where further amendments may be considered. The legislation must pass both chambers before it can be signed into law by President Donald Trump.
Representative Warren Davidson, a member of the House, has also expressed support for a permanent CBDC ban. He criticized the temporary ban, stating that the “2030 sunset works a pre-launch development period.” Davidson added, “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.” (cointelegraph.com)
Tom Emmer, the House Majority Whip, is advocating for his Anti-CBDC Surveillance State Act, which passed the House on July 17, 2025, but has yet to pass the Senate. Emmer stated, “The Chinese Communist Party uses a central bank digital currency (CBDC) 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 added, “My Anti-CBDC Surveillance State Act BANS our government from ever creating this Orwellian tool. The House passed it. Now, the Senate must act.” (cointelegraph.com)
Implications
The push for a permanent CBDC ban reflects growing concerns among U.S. lawmakers about the potential for financial surveillance and privacy infringements associated with digital currencies issued by central banks. If the legislation passes, it would establish a clear prohibition on the Federal Reserve’s ability to issue a CBDC, potentially influencing future discussions and developments in the digital currency space.
Outlook
The House is expected to vote on the amended 21st Century ROAD to Housing Act this week. If approved, the bill will return to the Senate for further consideration. Both chambers must pass the legislation before it can be signed into law by President Donald Trump. The outcome of this legislative process will determine the future of CBDC issuance in the United States.