Republican legislators in the U.S. House are working to transform a temporary prohibition on a central bank digital currency into a lasting restriction, as Congress prepares to vote on a major housing bill this week. According to Congressman Mike Flood, the revised version of the 21st Century ROAD to Housing Act removes what he calls a “backdoor green light for a CBDC” by making the ban indefinite instead of letting it expire in 2030.
The Senate Banking Committee initially introduced the housing package in March, focusing on supply, affordability, mortgage access, and manufactured housing rules. Senators Tim Scott and Elizabeth Warren led the legislation, which passed the Senate with a strong bipartisan vote of 84 to 6. Hidden within the bill was a clause that prevented the Federal Reserve or regional banks from issuing a digital dollar without congressional approval, but only until December 31, 2030.
House Republicans now aim to eliminate that sunset clause before the bill returns to the Senate. Representative Warren Davidson argues that the current deadline essentially creates a launch window for a government-issued digital currency. In a statement, he said, “The US House of Representatives could deliver a unifying win this week with bipartisan housing affordability legislation. Instead, they currently plan to deliver a go-live date for Central Bank Digital Currency, using housing as the Trojan Horse.” He also warned that the 2030 sunset works as a pre-launch development period, urging a full and permanent ban on CBDCs in the United States.
Separately, House Majority Whip Tom Emmer continues to lobby senators to pass his Anti-CBDC Surveillance State Act, which cleared the House in July. The bill would block the Federal Reserve from creating or issuing a central bank digital currency, framing the issue around privacy and financial freedom. Emmer stated, “The Chinese Communist Party uses a central bank digital currency to surveil and control its people,” adding that his legislation “bans our government from ever creating this Orwellian tool.”
Earlier attempts to halt a digital dollar through standalone legislation have stalled. Senator Mike Lee introduced the “No CBDC Act” to prohibit both the Federal Reserve and Treasury from issuing a CBDC, but the proposal failed to advance. Outside government, criticism of CBDCs often centers on surveillance and state control, though the Human Rights Foundation notes that they could improve financial access for underserved populations while also posing privacy risks. According to the Atlantic Council, only Nigeria, Jamaica, and the Bahamas have fully launched CBDCs, with many other countries still in pilot or research phases.