Although President Donald Trump has refused to sign the bipartisan housing bill passed by Congress, it is still expected to take effect at midnight—bringing a temporary ban on a U.S. central bank digital currency (CBDC) along with it.
The crypto industry’s long-standing resistance to a government-issued digital dollar appears to be rewarded, as the legislation will block such efforts once it becomes law.
The measure prevents the Federal Reserve from issuing a digital dollar for the next four years. Republican lawmakers have argued that a CBDC could open the door to excessive government surveillance, even though the U.S. has not made serious progress toward launching one. This restriction was included in the broader housing-affordability bill that Trump declined to sign.
In a post on Truth Social, Trump said he would not approve the bill, criticizing the United States Senate for failing to pass the “SAVE AMERICA Act.”
However, under the United States Constitution, legislation automatically becomes law if a president neither signs nor vetoes it within 10 days. Since Trump did not issue a veto, the bill is set to take effect at midnight.
The CBDC restriction will remain in place until the end of 2030, though the chances of the Fed launching a digital dollar within that period were already slim. Even before the appointment of Fed Chair Kevin Warsh, officials had maintained that such a move would require both White House backing and congressional approval—neither of which has been strongly evident.
While the crypto sector has opposed CBDCs over concerns they could compete with private stablecoins, other regions such as Europe and China have continued to explore or implement digital currencies. In the U.S., the issue has become increasingly political, with Republicans inserting the CBDC restriction into unrelated legislation after earlier attempts to attach it to bills like the Foreign Intelligence Surveillance Act.
Despite the housing bill’s overall popularity, Trump made a last-minute decision to oppose it, even after planning a signing event. He stated he would not sign any legislation until Congress passes stricter voter identification measures, including proof-of-citizenship requirements, which currently lack enough support.
Trump has warned that failing to enact such measures could hurt Republicans in the upcoming midterm elections, where Democrats are favored to regain control of the House. His stance has also raised concerns about the future of other legislation, including the Digital Asset Market Clarity Act, which could face similar resistance if passed later this year.
