U.S. Housing Bill Including CBDC Ban Set to Pass Without Trump's Signature

Without waiting for President Donald Trump's signature, a bipartisan housing-related bill, the "21st Century ROAD to Housing Act," which includes a provision banning the issuance of central bank digital currency (CBDC), is expected to automatically pass and take effect.

According to the U.S. Constitution, if a bill is sent to the White House during a congressional session and the president does not sign or veto it within ten days (excluding Sundays), the bill automatically becomes law. President Trump had indicated his intention to veto the bill, but with the deadline approaching, the legislation is moving forward.

Reasons for Trump's Veto and Political Protest

President Trump expressed on his social media platform, Truth Social, that he would withhold his signature not due to the content of the bill itself, but as a protest against Congress regarding a separate bill.

What the president is strongly advocating for is the passage of the SAVE America Act, which mandates proof of U.S. citizenship during voter registration for federal elections.

While criticizing Republican lawmakers who voted in favor, President Trump has not exercised his veto power by the Friday deadline. Even if a veto were to be issued, the bill had already passed with overwhelming bipartisan support in the House at 358 to 32 and in the Senate at 85 to 5, making it virtually impossible to overturn the outcome. President Trump posted the following:

Actual Impact of the Digital Dollar Ban

The main objective of this bill is to curb skyrocketing housing prices, deregulate, and limit housing ownership by large institutional investors, but market attention is focused on the accompanying "CBDC ban provision."

Limits on the Fed's Authority: The Federal Reserve Board (FRB) and regional Federal Reserve Banks are prohibited from issuing or creating retail digital dollars, directly or indirectly, until the end of 2030. Protection of Private Dollars: It explicitly states that the issuance of "open and permissionless private U.S. dollar-denominated currency" that ensures cash-equivalent privacy will not be hindered. Shift of Leadership: Previously, the FRB had stated it would not issue a CBDC without congressional approval, but this legislation has completely shifted the leadership of future digital dollar discussions to Congress.

The FRB has been cautious about introducing a CBDC and has not shown substantial progress, but the significance of this prohibition being codified into law for the first time is extremely important.

Background of the Bill's Passage and Ripple Effects on the Cryptocurrency Market

This ban provision developed from discussions surrounding the GENIUS Act, which regulates privately issued stablecoins. Republican lawmakers expressed concerns that the government's own issuance of a CBDC could lead to conflicts of interest with private stablecoins and infringe on citizens' financial privacy, successfully incorporating the provision into this bipartisan housing bill for effective legislation.

Co-sponsors, including Senator Elizabeth Warren, welcomed the bill's passage while criticizing President Trump's inaction, stating, "The passage of the bill is good news." Meanwhile, there are other concerns emerging in the cryptocurrency market. The president's stance of withholding his signature on important legislation due to election-related bills raises questions about potential political stagnation affecting the future of market structure bills, such as the CLARITY Act (Digital Asset Market Transparency Act), currently under congressional review, which industry stakeholders are closely monitoring.

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