Efforts to impose a permanent ban on a US central bank digital currency are emerging as a potential obstacle for a housing bill currently moving through the US Congress.
The blockage would add another challenge to legislation already facing a crowded agenda and competing policy demands.
Pressure intensified on 6 Mar when lawmakers urged House Speaker Mike Johnson and Senate Majority Leader John Thune to strengthen the bill’s CBDC restrictions. In a letter, they wrote that the current ban, which expires in 2030, is weaker than the Anti-CBDC Surveillance State Act and warned the housing bill could be "dead on arrival" in the House unless the sunset clause is removed.
In line with those efforts, Senator Ted Cruz has introduced an amendment to remove the 2030 expiration date, effectively converting the temporary CBDC ban into a permanent restriction on the Federal Reserve.
Policy groups say the push could complicate negotiations between the House and Senate as lawmakers attempt to move the broader housing package forward.
The dispute centres on the 21st Century ROAD to Housing Act, a broad package aimed at boosting US housing supply and affordability by expanding federal housing programmes and encouraging new development.
While the legislation focuses primarily on housing policy, the Senate version includes a provision negotiated during bipartisan talks that would prohibit the Federal Reserve from issuing a retail CBDC until 2030, turning the bill into a vehicle for one of Washington’s most politically charged crypto debates.
The housing package passed the House with overwhelming support and is now under consideration in the Senate, where lawmakers have begun debate and can introduce amendments before a final vote.
But the legislation faces additional headwinds as Congress grapples with competing priorities, including the partial shutdown of the Department of Homeland Security, geopolitical tensions with Iran and a shortened legislative calendar ahead of midterm elections.
If the Senate approves the measure with changes, including revisions to the CBDC provision, it would need to return to the House before it could be sent to the president.
The dispute reflects a broader pattern in Congress. Since the 117th Congress, at least four major bills have sought to restrict or block a US central bank digital currency, including proposals to ban pilot programmes, prohibit the Federal Reserve from issuing a digital dollar directly to consumers and block federal funding for CBDC development.
The Anti-CBDC Surveillance State Act, which passed the House in 2025, marked the furthest legislative progress but ultimately stalled in the Senate.
Despite repeated attempts and growing bipartisan support, no proposal to restrict a CBDC has cleared both chambers of Congress.
Still, industry advocates say the current provision represents progress. "Any step that moves Congress closer to preventing the Federal Reserve from issuing a central bank digital currency is a positive one and reflects the growing recognition of the importance of protecting Americans’ financial privacy," a spokesperson for The Digital Chamber told Sandmark.
