Trump Allows CBDC Ban in Housing Bill, Leaving Crypto Regulation Uncertain

The U.S. Housing Bill containing provisions that effectively ban the Federal Reserve from issuing a central bank digital currency (CBDC) has become law without President Donald Trump's signature, marking a significant policy victory for the crypto industry and privacy advocates.

The 21st Century ROAD to Housing Act officially took effect after the constitutional deadline expired late Friday night. The bill passed both chambers of Congress with overwhelming bipartisan support, 85 to 5 in the Senate and 358 to 32 in the House, and was sent to the White House, where Trump refused to sign it as a protest against the Senate's failure to advance a separate voting bill.

The legislation represents one of the most significant federal housing packages in decades, yet its most consequential provision for financial markets is the rider that bars the central bank from issuing a CBDC or any substantially similar digital asset until December 31, 2030. This effectively codifies into law what had been the Fed's cautious stance against a digital dollar.

The ban removes near-term uncertainty for private stablecoin issuers and crypto markets, but it leaves broader digital asset regulation unresolved. The episode raises concerns about the fate of the pending Digital Asset Market Clarity Act, a more comprehensive crypto market structure bill, given Trump's unpredictable approach to legislation and his personal crypto ventures.