US Senate advances housing reform bill with digital dollar ban

The US Senate has moved forward with a sweeping housing reform package that also blocks the Federal Reserve from issuing a central bank digital currency without clear approval from Congress.

In a rare show of bipartisan unity, senators voted 84 to 6 on Tuesday to advance the legislation, combining long-awaited housing reforms with a high-profile financial technology restriction.

The measure now heads into the next stage of negotiations, where both its housing provisions and its stance on a digital dollar are expected to draw close scrutiny.

Housing overhaul expands supply and access

The legislation, known as the 21st Century ROAD to Housing Act, is a comprehensive substitute amendment to H.R. 6644.

It was drafted by Senate Banking Committee Chairman Sen Tim Scott alongside Sen Elizabeth Warren.

At its core, the bill is designed to address long-standing supply constraints and rising housing costs across the country.

Lawmakers have included provisions to expand housing inventory, streamline regulatory processes, and modernise affordability programmes.

The package also seeks to strengthen rental assistance initiatives and improve mortgage accessibility.

Manufactured housing rules would be updated under the proposal, while financial literacy programmes would receive additional support.

Supporters argue that the reforms aim to reduce bottlenecks that have limited construction and inflated prices in many regions.

By addressing structural barriers in both supply and financing, the bill attempts to tackle housing pressures from multiple angles.

CBDC clause limits Federal Reserve powers

Alongside the housing reforms, the bill contains a notable provision under Title X focused on central bank digital currency policy.

The section prohibits the Federal Reserve from issuing a US CBDC unless Congress explicitly authorises it.

This effectively blocks the central bank from launching a digital dollar on its own authority.

The inclusion reflects growing concern among lawmakers over privacy, financial surveillance, and the potential reshaping of the banking system.

Critics of a CBDC have raised questions about how transaction data would be handled and whether a digital dollar could alter the role of commercial banks.

By embedding the restriction within a broader housing bill, senators have linked financial technology oversight to a must-pass domestic policy priority.

The move signals that debate over digital currency is no longer confined to specialist committees.

Bipartisan vote signals rare alignment

The Senate’s 84 to 6 vote margin stood out in a chamber often divided along party lines.

Journalist Burgess Everett noted on Tuesday that such a lopsided result is uncommon.

The wide support suggests cross-party agreement on both housing reform and limits on unilateral CBDC issuance.

However, the digital currency ban could become a focal point as the legislation moves to the House of Representatives.

If the bill is ultimately enacted, it would mark one of the most significant housing reform efforts in recent years.

At the same time, it would send a clear signal that Congress intends to retain direct control over any future decision to introduce a US central bank digital currency.

The measure now enters the next phase of the legislative process, where its combined housing and digital finance provisions will shape discussions on affordability, supply, and the future of US monetary innovation.