Trump Refuses Housing Bill as U.S. CBDC Ban Set to Become Law Automatically

The U.S. crypto industry is poised to secure a major policy victory as a temporary ban on a U.S. central bank digital currency (CBDC) is set to take effect through a housing bill that will automatically become law despite President Donald Trump's refusal to sign it.

Under the legislation, the Federal Reserve will be prohibited from issuing a digital dollar for the next four years, with the restriction remaining in place until the end of 2030. Republican lawmakers have long argued that a U.S. CBDC could expand government surveillance, although the Federal Reserve has never made a serious push to launch one.

President Trump announced on Friday that he would not sign the bipartisan housing affordability bill, despite its approval by both chambers of Congress. In a Truth Social post, Trump said he was protesting the Senate's failure to pass the SAVE AMERICA ACT, a proposal that would introduce stricter proof-of-citizenship and voter identity requirements.

However, under the U.S. Constitution, a bill automatically becomes law if the president neither signs nor vetoes it within 10 days after receiving it from Congress. Because Trump has not issued a formal veto, the legislation is expected to take effect automatically.

The CBDC restriction aligns with years of opposition from the cryptocurrency industry, which argues that a government-issued digital dollar could compete with privately issued stablecoins. While countries including China and members of the European Union have advanced their own CBDC initiatives, support for a U.S. version has remained limited. Federal Reserve officials have repeatedly stated that launching a digital dollar would require approval from both Congress and the White House.

Republican lawmakers previously attempted to include a CBDC prohibition in other legislation, including the Foreign Intelligence Surveillance Act, before successfully adding it to the housing package.

Trump's decision to withhold his signature also raises fresh uncertainty for other pending legislation. Some lawmakers and industry observers are questioning whether the Digital Asset Market Clarity Act could face a similar delay if Congress approves the crypto market structure bill later this summer while the president continues to prioritize passage of his election-related voting proposal.