US Congress Passes Anti-CBDC Legislation as Part of Housing Bill
The United States Congress has advanced significant legislation that includes a moratorium on the issuance of a central bank digital currency (CBDC) by the Federal Reserve. The 21st Century ROAD to Housing Act, which primarily addresses housing affordability by aiming to curb corporate landlord dominance and increase housing supply, passed the House of Representatives with a substantial majority of 358-32. This follows a similar overwhelming approval in the Senate.
Key Takeaways
- The 21st Century ROAD to Housing Act, passed by both the House and Senate, includes provisions restricting the creation of a U.S. CBDC.
- The Federal Reserve is prohibited from issuing or creating a CBDC, or any substantially similar digital asset, until December 31, 2030.
- This legislative action aligns with the current administration’s stated skepticism towards CBDCs.
- The bill’s passage marks a notable regulatory development in the digital currency landscape within the U.S.
The anti-CBDC provisions within the ROAD to Housing Act prohibit the Federal Reserve from issuing or creating a CBDC, or any digital asset deemed substantially similar to a CBDC, through December 31, 2030. This legislative move solidifies a cautious approach towards a potential U.S. digital dollar, reflecting a broader trend of regulatory scrutiny over digital currencies globally.
The bill’s journey through Congress saw a recent acceleration, with key senators and House representatives releasing an updated version of the legislation, resolving previous delays. The bipartisan support for the bill, particularly its inclusion of stringent measures against CBDC development, indicates a unified stance on this aspect of digital finance policy within the legislative bodies.
This development is consistent with the Trump administration’s previously stated position on digital currencies. U.S. Treasury Secretary Scott Bessent reiterated last month that CBDCs are “off the table” and indicated a focus on advancing the Clarity Act, which pertains to digital assets. The passage of the ROAD to Housing Act thus aligns with the executive branch’s declared policy direction.
Potential Regulatory Precedent and Global Impact
The inclusion of a federal ban on CBDC issuance in a non-monetary policy bill sets a significant precedent. While the bill’s primary objective is housing affordability, the incorporation of such a definitive stance on CBDCs suggests that digital currency regulation is becoming a bipartisan concern, capable of being addressed through diverse legislative vehicles. This could influence future regulatory discussions in other jurisdictions, particularly those considering the implementation of their own CBDCs. The extended moratorium until 2030 provides a substantial period for market participants and policymakers to assess the implications of CBDCs without immediate federal issuance pressure.
Original article : www.theblock.co