Housing Bill with CBDC Ban Becomes Law Without Trump Signature

Legislative Path and Automatic Enactment

The bipartisan housing measure passed both chambers of Congress with wide margins last month: 358-32 in the House and 85-5 in the Senate. It reached the White House but faced a delay when President Trump stated he would not sign it unless Congress first advanced the SAVE America Act, which calls for proof of citizenship requirements for federal voting.

Under the U.S. Constitution, if the president neither signs nor vetoes a bill within 10 days (Sundays excepted) while Congress is in session, it becomes law without signature. Trump confirmed his position on Truth Social, writing: “I will not sign the Housing Bill, which has been fully approved by Congress and sent to the White House, in PROTEST over the fact that the United States Senate is not capable of passing THE SAVE AMERICA ACT.” A White House official indicated no veto would be issued.

CBDC Prohibition Details

The legislation bars the Federal Reserve Board of Governors and regional banks from issuing or creating a central bank digital currency, directly or through intermediaries, or any substantially similar digital asset. The restriction runs through December 31, 2030. It also clarifies that the measure does not restrict open, permissionless, private U.S. dollar-denominated currencies that maintain privacy protections comparable to physical cash.

This provision originated from earlier Republican efforts to attach similar language to other bills, including stablecoin regulation discussions around the GENIUS Act. The housing package provided the successful vehicle.

Background on U.S. CBDC Discussions

The Federal Reserve released a discussion paper in 2022 exploring potential benefits and risks of a digital dollar but has maintained that any issuance would require explicit congressional approval. Officials have shown limited enthusiasm for proceeding without broad political support. The new law formalizes limits during a period when no active development toward launch was underway.

Republican lawmakers have long expressed concerns about government surveillance potential and competitive effects on private stablecoins. The crypto sector has generally opposed a U.S. CBDC on grounds that it could undermine privately issued alternatives.

Broader Housing Focus of the Bill

Beyond the digital currency language, the 21st Century ROAD to Housing Act targets affordability through steps to reduce regulatory barriers to construction, expand financing options, and address institutional ownership of residential properties. It earned support across party lines for its core housing provisions.

Reactions and Context

Industry groups in the digital asset space welcomed the CBDC restriction as a step that keeps decision-making with Congress and the public. The provision emerged amid ongoing debates over stablecoin frameworks and market structure legislation such as the CLARITY Act, which continues to advance separately in the Senate.

Trump had previously issued an executive order directing federal agencies to avoid actions toward establishing a CBDC. The new statutory ban extends that stance for the specified period.

The enactment marks a notable instance of policy on monetary technology advancing through unrelated legislation. It sets a defined period during which Congress must act for any change in the current restrictions.