- Trending
- Comments
- Latest
US President Donald Trump has refused to sign a bipartisan housing bill containing a ban on a Federal Reserve digital dollar through 2030, demanding Congress first pass a voter identification proposal the Senate rejected earlier this month by a 48-50 vote.
The legislation, known as the 21st Century ROAD to Housing Act, cleared the Senate in an 85-5 vote on June 22 before passing the House of Representatives by a margin of 358-32. Rather than signing the bill as expected, Trump cancelled a planned signing ceremony and insisted that Congress first approve the Safeguarding American Voter Eligibility (SAVE) Act, which would require documentary proof of citizenship for federal voter registration.
The CBDC ban has emerged as one of the most significant digital asset policy measures to advance through Congress in recent years. The provision prohibits the Board of Governors of the Federal Reserve System and all Federal Reserve banks from issuing, creating, or circulating a central bank digital currency either directly or through intermediaries until December 31, 2030.
The restriction applies only to a government-issued digital dollar and does not extend to privately issued dollar-backed stablecoins. The legislation specifically exempts open, permissionless, and private stablecoins, allowing companies such as Circle and Tether to continue operating within the existing regulatory framework.
Although Trump has delayed signing the bill, administration officials have indicated that the dispute is unrelated to the digital currency language itself.
Speaking to reporters, Trump emphasized that the disagreement centers on election legislation rather than digital assets.
“Well-unified.” — President Donald Trump, speaking about Republican unity while withholding his signature on the housing package.
The White House has consistently opposed a retail central bank digital currency, making the delay more about legislative strategy than disagreement over the CBDC Ban itself.
The housing bill (which includes a temporary CBDC ban through 2030) is being sent to Trump for final approval.
At the center of the impasse is the Safeguarding American Voter Eligibility (SAVE) Act, which Trump wants Congress to pass before he approves the housing package.
The proposal would require individuals registering for federal elections to provide documentary proof of U.S. citizenship. However, the Senate rejected the measure on June 4 in a 48-50 vote after four Republican senators Susan Collins, Lisa Murkowski, Mitch McConnell, and Thom Tillis joined all Democrats in opposing it.
Senate Majority Leader John Thune has since indicated that he is unlikely to bring the legislation back for another vote during the current session, leaving little immediate path for Trump’s demand to be fulfilled.
The delay has sparked criticism from Democratic lawmakers, who argue that widely supported housing legislation should not be tied to a separate election-related proposal. Republican leaders, meanwhile, have defended the president’s approach while maintaining that the party remains united.
Despite the political deadlock, legal analysts note that the bill’s overwhelming congressional support significantly reduces the likelihood that the CBDC Ban will ultimately be blocked.
Trump’s opposition to a government-issued digital dollar predates the current legislation.
In January 2025, he signed an executive order preventing his administration from pursuing a retail central bank digital currency.
At the time, Trump argued that a government-issued digital dollar would threaten:
“The stability of the financial system, individual privacy, and the sovereignty of the United States.” — President Donald Trump, Executive Order, January 2025.
Those concerns have been echoed by many cryptocurrency advocates, who argue that a Federal Reserve-issued digital currency could expand government oversight of financial transactions. The crypto industry has spent several years lobbying Congress to enact a permanent or long-term CBDC Ban, making the current legislation one of its most significant policy victories.
Because the housing package passed both chambers by margins exceeding the two-thirds threshold required to override a presidential veto, observers widely expect the legislation and the CBDC Ban it contains to become law even if Trump delays formal approval.
According to earlier reporting by Bitcoin.com News, the Senate’s decisive 85-5 vote represented one of the industry’s strongest legislative wins this year.
The debate over the CBDC Ban comes as Washington increasingly favors privately issued stablecoins over a government-operated digital dollar.
Congress previously approved the GENIUS Act in July 2025 to establish a regulatory framework for payment stablecoins, while six federal agencies continue working toward implementing the law before the July 18, 2026 deadline.
This policy direction reflects a growing consensus among many U.S. lawmakers that innovation in digital payments should primarily come from the private sector under federal oversight rather than through a central bank-issued currency.
Internationally, however, the United States is taking a different path. More than 130 countries have explored central bank digital currencies, with several—including China through its digital yuan already piloting or launching national digital currencies.
If enacted, the CBDC ban would keep the United States from issuing a retail central bank digital currency until the end of 2030, positioning the country differently from many of its global economic competitors.
Whether Trump ultimately signs the bill, Congress revisits the voter eligibility legislation, or the constitutional process allows the measure to become law without his signature, the practical outcome appears increasingly clear: the CBDC ban is expected to prevent the Federal Reserve from issuing a U.S. digital dollar for the remainder of the decade.
Primary Source: The 21st Century ROAD to Housing Act; Executive Order on prohibiting a U.S. retail CBDC (January 2025).
Copyright © 2025 - The Bit Gazette.
