The 21st Century ROAD to Housing Act has become law, outlawing the issuance of a central bank digital currency (CBDC) by the Federal Reserve until December 31, 2030, without the signature of President Donald Trump.
This legislation was enacted on July 11, as Trump allowed the 10-day window for action post-passage to expire, refusing to sign the bill in protest against Congress not advancing the SAVE America Act, which mandates voter registration through proof of citizenship.
Key Provisions of the CBDC Ban
Contained within the housing bill is a clause that explicitly prohibits the Federal Reserve from issuing or creating a CBDC, or any similar digital asset, until the end of 2030. Previously, the Federal Reserve had indicated that it would only consider the issuance of a CBDC following Congress's approval. This law now formalizes the prohibition for the next four years.
Bipartisan Support and Political Implications
The housing act received overwhelming bipartisan support, passing the Senate with a vote of 85-5 and the House with 358-32. Analysts have speculated that the inclusion of the CBDC ban served to attract Republican votes for this significant housing legislation.
Senator Elizabeth Warren, a co-sponsor of the bill, addressed Trump's refusal to sign, emphasizing that the housing legislation, termed one of the most consequential in three decades, will still be enacted.
Impact on Future Crypto Regulations
Following Trump's inaction regarding the housing legislation, concerns are mounting regarding potential delays for other digital asset regulatory measures currently being reviewed in Congress. The Digital Asset Market Clarity Act, commonly referred to as the CLARITY Act, has successfully passed the House and moved through two Senate committees, with expectations for a Senate vote in July.
However, Trump's supportive stance towards the cryptocurrency industry, cited in reports of him earning over $1.4 billion from crypto ventures, adds complexity to the legislative landscape. His reluctance to endorse legislation disconnected from his objectives may lead to further stagnation in discussions concerning essential policies for the crypto marketplace.
This material is for informational purposes only and should not be construed as financial advice.
