On Monday, the Senate introduced the "21st Century ROAD to Housing Act" to streamline U.S. housing construction, temporarily banning a potential CBDC. Redu
Senate Bill Aims to Boost Housing, Temporarily Bans CBDC
On Monday, the Senate Committee on Banking, Housing, and Urban Development introduced the "21st Century ROAD to Housing Act," a bipartisan bill aiming to streamline housing construction processes in the U.S. The legislation is designed to reduce regulatory hurdles, decrease costs, increase the housing supply, and achieve this without new federal expenditures.
Key Provisions of the Bill
The package consolidates support from the Senate’s unanimously backed "ROAD to Housing Act" and integrates bipartisan ideas from the House. It also sets a path to regulate corporate landlords more effectively, aiming to prevent them from limiting family access to homeownership opportunities. Notably, among its provisions is a temporary ban on the Federal Reserve issuing a central bank digital currency (CBDC).
CBDC Ban Details
The CBDC ban provision within the 303-page bill covers just two pages and includes specific language: "Except as provided in subsection (c), the Board of Governors of the Federal Reserve System or a Federal reserve bank may not issue or create a central bank digital currency or any digital asset that is substantially similar to a central bank digital currency directly or indirectly through a financial institution or other intermediary." This ban has sunset provisions, set to expire on December 31, 2030. Additionally, the bill makes an exception for permissionless, private "dollar-denominated" currencies that fully preserve privacy protections akin to physical cash.
Legislative Context and Administration Stance
This ban follows previous attempts by lawmakers to include such measures in similar bills. The House of Representatives had already passed a standalone version last year, but it has not yet gained full legislative approval. In a statement supporting the bill, the White House explicitly endorsed the CBDC provision, highlighting its alignment with presidential priorities that aim to protect personal privacy and liberty.
Conclusion
The introduction of this bill marks an important step in addressing housing challenges while temporarily pausing federal efforts to enter the digital currency space. Both Scott and Warren emphasized the importance of this legislation in fostering economic opportunities and homeownership for all Americans, including those from backgrounds like their own.
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