Republican lawmakers in the US House of Representatives sought to turn temporary restrictions on central bank digital currencies into a permanent ban as Congress prepares to vote on a key housing bill later this week.
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- House Republicans have pushed to make the proposed ban on central bank digital currencies in the United States permanent in the revised Path to 21st Century Housing Act.
- Rep. Warren Davidson said the 2030 Senate expiration date could create a future path for a digital dollar issued by the Federal Reserve.
- House Majority Whip Tom Emmer continued to urge the Senate to pass the Anti-Central Bank Digital Currency (CBDC) Oversight Act after the House approved it earlier this year.
According to Congressman Mike Flood, lawmakers in the House of Representatives Reviewer The Senate version of the Pathway to 21st Century Housing Act would remove what it described as a “backdoor green light for central bank digital currency” by making the ban indefinite rather than allowing it to expire in 2030.
Senate Banking Committee First foot Housing package in March, as a comprehensive reform bill focusing on housing supply, affordability programs, mortgage access, and manufactured housing rules. Senators Tim Scott and Elizabeth Warren led the legislation, which later advanced through the Senate on a bipartisan 84-6 procedural vote.
Buried within the housing proposal was a provision that would prevent the Federal Reserve Bank or regional Federal Reserve banks from issuing a US central bank digital currency without congressional approval. Under the Senate version, the restriction would have remained in effect only until December 31, 2030.
House Republicans are now trying to remove that sunset clause entirely before the legislation returns to the Senate for further consideration.
Among those supporting the revised language, Representative Warren Davidson argued that the current deadline effectively creates a future launch window for a government-issued digital dollar.
“The US House of Representatives could pull off a unified victory this week with bipartisan housing affordability legislation,” Davidson said. “Instead, they are currently planning to move forward the launch date for a central bank digital currency, using housing as a Trojan horse.”
In separate statementDavidson added, “Sunset 2030 serves as a pre-launch development period,” while calling for a complete and permanent ban on… Central bank digital currencies In the United States.
Republicans are reviving an anti-CBD campaign in Congress
Elsewhere on Capitol Hill, House Majority Whip Tom Emmer continued to pressure senators to pass the Anti-Central Bank Digital Currency (CBDC) Oversight Act following the action. to survey House of Representatives in July.
The proposal would prevent the Federal Reserve from creating or issuing a central bank digital currency, with proponents framing the issue as tied to privacy and financial freedom.
“The Chinese Communist Party is using Central Bank Digital Currency (CBDC) to monitor and control its own people,” Emmer said while urging Senate approval of the bill. He added that his legislation “prevents our government from creating this Orwellian device.”
Previous efforts to stop the digital dollar through standalone legislation have struggled to gain traction. Senator Mike Lee previously introduced the No Central Bank Digital Currency Act, which sought to prevent both the Federal Reserve and the Treasury Department from issuing central bank digital currencies, though the proposal has stalled in Congress.
Outside of government, criticism of central bank digital currencies has often centered on concerns of surveillance and state control. At the same time, the Human Rights Foundation Argue Digital currencies issued by central banks can improve access to financial services for underserved populations while also creating risks associated with privacy and government abuse.
Data currently tracked by the Atlantic Council He appears Only Nigeria, Jamaica and the Bahamas have fully launched CBDCs, while dozens of other countries are still in pilot programs or research stages.
