Congress links housing bill to Federal Reserve digital dollar ban

The bipartisan agreement, unveiled on June 16 by Senate Banking Chair Tim Scott, Ranking Member Elizabeth Warren, and House Financial Services leaders French Hill and Maxine Waters, represents a strategic effort to consolidate legislative priorities. By amending the Federal Reserve Act, the bill prevents the central bank from issuing or facilitating any digital asset that functions as a direct public liability, effectively codifying the privacy protections previously outlined in a January 2025 executive order by President Donald Trump.

While the ban is set to expire on December 31, 2030, the legislation includes a critical carveout for private stablecoins. Provided these digital assets remain dollar-denominated, open, and permissionless, they would operate outside the scope of the restriction. This distinction ensures the bill does not impede broader private-sector crypto development, a point of contention in previous, failed attempts to pass standalone anti-CBDC legislation. With the housing package expected to reach a floor vote as early as next week, the bill offers a pathway for lawmakers to secure a firm policy stance on digital currency while addressing the broader housing crisis before the August recess.