U.S. Set to Block Digital Dollar Rollout Under New Housing Law CBDC Ban

Although President Donald Trump refused to sign Congress’s bipartisan housing bill, it is still slated to become law at midnight—bringing with it a temporary ban on a U.S. central bank digital currency (CBDC).

The crypto sector, which has long pushed back against a government-issued digital dollar, stands to gain from the restriction included in the legislation.

The bill bars the Federal Reserve from issuing a digital dollar for four years. Republican lawmakers have warned that a CBDC could enable excessive government surveillance, even though the U.S. has not made any concrete move toward launching one. The provision was folded into the broader housing-affordability package that Trump declined to approve.

In a Truth Social post, Trump said his refusal was a protest against the United States Senate for failing to pass the “SAVE AMERICA Act.”

However, under the United States Constitution, any bill becomes law if the president neither signs nor vetoes it within 10 days. Since Trump did not issue a veto, the measure will automatically take effect at midnight.

The CBDC restriction is set to expire at the end of 2030, though the likelihood of the Fed launching a digital dollar within that timeframe was already slim. Even before Fed Chair Kevin Warsh took office, central bank officials had maintained that such a move would require both White House backing and congressional approval—support that has not been forthcoming.

While the crypto industry has opposed CBDCs due to concerns they could compete with privately issued stablecoins, other regions such as Europe and China have actively pursued digital currency initiatives. In the U.S., however, the issue has become increasingly politicized, with Republicans inserting the CBDC ban into unrelated legislation after earlier attempts to attach it to measures like the Foreign Intelligence Surveillance Act.

Despite the housing bill’s broad support, Trump made a last-minute decision to oppose it, even after a signing ceremony had been planned. He said he would not approve any legislation until Congress passes stricter voter identification rules, 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 seen as having an advantage. His stance has also cast uncertainty over other pending legislation, including the Digital Asset Market Clarity Act, which could face similar resistance if it reaches his desk later this year.