U.S. Senate Votes to Block Federal Reserve Digital Dollar in Bipartisan Housing Bill

The U.S. Senate has passed a sweeping measure to prohibit the Federal Reserve from issuing a central bank digital currency (CBDC), embedded within the 21st Century ROAD to Housing Act. The CBDC ban passed with a striking 89-10 bipartisan vote, reflecting rare cross-party consensus on financial privacy concerns — though the broader housing legislation faces a rockier path in the House of Representatives.

Under the bill's language, the Federal Reserve would be barred from issuing or creating any digital asset substantially similar to a CBDC, whether directly or through intermediaries, through at least the end of 2030. While blocking a government-issued digital dollar has long been a Republican priority, the U.S. has never moved beyond the research phase for such a currency — leaving privately issued stablecoins and international competitors like China's digital yuan to advance without a domestic government rival.

Digital Chamber CEO Cody Carbone praised the Senate's decision, calling financial privacy "a cornerstone of American freedom" and emphasizing that digital currency innovation should remain private sector-led.

The housing portions of the 302-page bill, however, are generating friction. The Senate version would require large institutional investors — including private equity firms — to significantly reduce their residential real estate holdings, a provision that House lawmakers are pushing back on. Interestingly, President Trump has expressed support for limiting corporate homeownership, one of the few policy positions aligning him with Democratic members of Congress.

Still, Trump has indicated he will not sign any legislation until Congress passes a voter ID bill requiring proof of citizenship at the ballot box ahead of this year's midterm elections — a demand that introduces further uncertainty.

The housing bill's fate could also ripple into progress on the Digital Asset Market Clarity Act, the broader crypto market structure framework currently working its way through Congress.