Warren backed housing bill that blocks a retail digital dollar

Sen. Elizabeth Warren voted for the 21st Century ROAD to Housing Act, which the Senate passed 85-5 late Monday. The bill includes a provision that prevents the Federal Reserve from issuing a retail digital dollar through at least the end of 2030 and requires explicit congressional authorization for a similar retail CBDC after that date.

The legislation focuses on increasing home construction, reforming permitting and limiting certain private-equity purchases of single-family homes. The restriction on a retail digital dollar was added during negotiations and remained in the package as senators worked to secure bipartisan support for the housing measures.

The provision converts an existing executive branch posture into law. The Federal Reserve has been in an exploratory phase on retail central bank digital currencies, and Fed officials have indicated any issuance would need authorization from Congress and the executive branch. In January 2025, the White House issued an executive order directing agencies to stop developing or promoting a CBDC. A statutory ban through 2030 would require new legislation to reopen the path for a consumer-facing digital dollar before that deadline.

In a 2021 Senate appearance Warren described central bank digital currency as having “great promise,” saying a well-designed digital public currency could improve financial inclusion, efficiency and safety. There is no public record that she personally pushed for the CBDC language to be removed; the restriction appears to have been accepted as part of the broader agreement to pass the housing bill.

The ban’s immediate practical effect may be limited because U.S. authorities were not prepared to launch a retail digital dollar. The Fed continues research into tokenized settlement and wholesale systems. The New York Fed participates in Project Agorá, which focuses on wholesale, cross-border transactions rather than consumer accounts at a central bank. The bill does not prohibit all Fed research on tokenized systems or institutional payment platforms.

More than 140 countries and currency unions are exploring or developing CBDCs, and several nations have launched retail digital currencies for consumers. Many central banks have prioritized wholesale projects for interbank settlement and for cross-border payments.

The restriction in the housing law expires in 2030, leaving Congress the option to revisit retail CBDC policy. For now, the Federal Reserve is barred from offering a consumer-facing digital dollar through that date while continuing permitted research into non-retail digital currency uses.