CBDC Ban Becomes Law Under Housing Bill
A major U.S. housing bill that includes a CBDC Ban has officially become law. The legislation took effect without President Donald Trump’s signature after the constitutional deadline expired, marking a significant development for the cryptocurrency industry.
Housing Bill Becomes Law Automatically
The 21st Century ROAD to Housing Act became law after Congress approved it with overwhelming bipartisan support. The bill passed the Senate by 85-5 and the House of Representatives by 358-32.
Although President Trump announced he would not sign the legislation, the U.S. Constitution allows a bill to become law if the president neither signs nor vetoes it within ten days after receiving it.
Trump Declined to Sign the Bill
President Trump stated that he refused to sign the housing bill in protest. He argued that Congress should first approve legislation requiring proof of citizenship for voting in federal elections.
Despite his objection, the bill automatically became law because no veto was issued before the constitutional deadline.
CBDC Ban Included in the Legislation
One of the most important provisions for the crypto industry is the CBDC Ban. The new law prohibits the U.S. Federal Reserve from issuing a Central Bank Digital Currency (CBDC).
A CBDC is a digital version of a country’s national currency that is issued and regulated by its central bank. Several countries have explored CBDC projects through research and pilot programs.
Federal Reserve's Position on CBDCs
The Federal Reserve has studied the potential benefits and risks of launching a digital dollar. In 2022, it released a report outlining the possible impact of a CBDC on the U.S. financial system.
However, Federal Reserve officials have repeatedly stated that they would not issue a CBDC without clear authorization from Congress.
