US Housing Law Barring Fed CBDC Takes Effect Without Trump Signature
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A bipartisan US housing bill, the 21st Century ROAD to Housing Act, has taken effect without President Donald Trump’s signature. The law includes a provision that bars the Federal Reserve from issuing a central bank digital currency, or CBDC.
The bill became law on July 10 despite Trump’s refusal to sign it, The Block reported. Under the US Constitution, legislation sent to the president automatically takes effect if it is neither signed nor vetoed within 10 days.
Trump wrote on Truth Social on July 10 that he would not sign the housing bill, even though Congress had approved it. He said the move was a protest after the Senate failed to pass the SAVE America Act, which would require proof of citizenship for voting in federal elections.
Despite Trump’s objections, the measure drew overwhelming support in Congress. It passed the Senate last month by an 85-5 vote and cleared the House by 358-32. The bill is aimed at lowering housing costs by spurring home construction and expanding financing options.
For the digital-asset industry, the bill’s impact centers on its outright ban on CBDC issuance. A CBDC is a digital form of fiat currency issued and regulated directly by a central bank. The Fed published a related report in 2022 and has explored the possibility of introducing one. Even so, senior officials have remained skeptical and have maintained that the central bank would not proceed without explicit congressional approval.
Blocking a CBDC has been one of Republicans’ top priorities. Last year, Republican opposition also derailed the GENIUS Act, a stablecoin bill, because it did not include a provision fully banning CBDCs.
With the housing law now in effect, a legal barrier to any Fed-issued CBDC is now on the books. That leaves the US digital-asset ecosystem set to develop around privately issued cryptocurrencies and stablecoins.
