House GOP push to enshrine permanent CBDC ban in housing bill

House Republicans are moving to insert a permanent ban on a Federal Reserve central bank digital currency into the 21st Century ROAD to Housing Act as the House prepares to vote on the amended bill this week. The Senate version of the measure included a ban that would expire on Dec. 31, 2030; the House amendment would remove that sunset and prohibit the Fed from issuing a CBDC indefinitely.

The Senate Committee on Banking, Housing and Urban Affairs released the bill in March with a focus on federal housing programs and the temporary CBDC restriction. House Republicans, including Representative Mike Flood, revised the language to seek an indefinite prohibition, with Flood saying the change reverses a “backdoor green light for a CBDC.” If the House approves the amended bill, it will return to the Senate for consideration and could be altered again before any final legislation reaches the president.

Representative Warren Davidson described the 2030 sunset as “a pre-launch development period” and warned that housing legislation could be used as a “Trojan Horse” to advance a CBDC. Davidson urged lawmakers to adopt a permanent ban rather than a time-limited restriction.

Other Republican lawmakers have pursued standalone bills aimed at blocking a U.S. CBDC. House Majority Whip Tom Emmer sponsored the Anti-CBDC Surveillance State Act, which the House passed on July 17; the measure has not cleared the Senate. Emmer argued a CBDC could be used for surveillance and control and said his bill would bar the federal government from creating such a tool. Senator Mike Lee previously introduced the No CBDC Act to prohibit the Treasury and the Federal Reserve from issuing a CBDC, but that proposal stalled in Congress.

Supporters of a permanent ban say it would prevent privacy risks and government overreach. Advocates for studying or piloting a CBDC say a centrally issued digital currency could modernize payments and expand financial services access for underbanked populations. The Human Rights Foundation has noted potential financial inclusion benefits while warning of privacy concerns and possible avenues for government abuse.

Internationally, three countries have officially deployed a retail CBDC and dozens more are testing or piloting versions. Tracking by policy organizations shows Nigeria, Jamaica and the Bahamas among the deployments, with roughly 41 other countries conducting pilot programs.

The House vote this week will decide whether the permanent prohibition remains in that chamber’s version of the 21st Century ROAD to Housing Act. Passage in the House would send the bill back to the Senate, where lawmakers could seek to restore the sunset or remove the ban, setting the terms for any conference negotiations before a final bill could reach the president’s desk.