House Republicans have achieved a significant legislative breakthrough by advancing an amendment to permanently prohibit the Federal Reserve from issuing a central bank digital currency (CBDC). According to reports from ChainCatcher and Cointelegraph, the provision is part of an amendment to the '21st Century Housing Act', a bill scheduled for a floor vote this week. The amendment removes the Senate-proposed 2030 sunset clause entirely, making the prohibition indefinite rather than allowing it to expire in December 31, 2030. Representative Mike Flood stated that the House-revised version of the bill aims to overturn the "implicit green light" for CBDC and make the ban permanent. If the bill passes the House, it will return to the Senate and may undergo further revisions, though the amendment must still pass the House, be reconciled with the Senate version, and survive potential presidential veto before becoming law.
Representative Tom Emmer, a Minnesota Republican and vocal CBDC critic, has argued that a permanent ban is necessary to prevent government surveillance and financial control. As reported by ChainCatcher and Cointelegraph, Emmer warned that if the U.S. adopts a CBDC, "privacy and economic freedom will no longer exist." Representative Warren Davidson supports a permanent ban, arguing that a 2030 expiration date would essentially give CBDC a pre-launch development period. The original Senate version prevented the Federal Reserve or regional Federal Reserve banks from issuing a U.S. CBDC without congressional approval, with the restriction set to expire on December 31, 2030. The measure released by the Senate Committee on Banking, Housing and Urban Affairs in March mainly revises federal housing programs, but it also bars the Federal Reserve System and any Federal Reserve bank from issuing a CBDC or similar instrument until December 31, 2030.
House Majority Whip Tom Emmer has continued lobbying senators to pass his Anti-CBDC Surveillance State Act after the measure cleared the House on July 17, though it is still awaiting full Senate approval. According to ChainCatcher and Cointelegraph, Emmer has previously introduced standalone legislation to block CBDC development, but this amendment ties the issue to a broader housing policy bill, increasing its legislative momentum. The move is widely seen as a win for cryptocurrency advocates and privacy-focused groups, who have lobbied heavily against government-issued digital currencies. A permanent ban would eliminate the threat of direct state competition with decentralized cryptocurrencies like Bitcoin and Ethereum, and remove a major source of uncertainty for crypto exchanges and wallet providers who have been preparing for potential regulatory shifts.
The Republican effort to permanently ban a Fed-issued CBDC represents a pivotal moment in the U.S. digital currency debate, with the outcome remaining uncertain despite the legislative advancement. As reported by ChainCatcher and Cointelegraph, the inclusion of the CBDC ban in a must-pass housing bill increases its chances of becoming law, but the amendment's path forward may be complicated by moderate Republicans and Democrats who may oppose tying the two issues together. The White House has not taken a formal position on the specific amendment, but the Biden administration has previously expressed openness to studying a CBDC. Proponents of a CBDC, including some Democrats and financial technology advocates, argue that a digital dollar could modernize the payment system, reduce transaction costs, and improve financial inclusion for unbanked populations, while also pointing to China's digital yuan as a reason for U.S. competitiveness in digital finance.
