Housing Bill With CBDC Ban Becomes Law Without Trump's Signature
The 21st Century ROAD to Housing Act includes a provision prohibiting the Fed from issuing a central bank digital currency.
The 21st Century ROAD to Housing Act, a housing-focused bill that also bans the Federal Reserve from issuing a central bank digital currency (CBDC), has officially become law. The bill automatically passed after President Donald Trump declined to sign it within the required 10-day period, allowing it to take effect without his endorsement.
The CBDC prohibition clause, inserted as a rider to the housing legislation, explicitly prevents the Fed from creating, issuing, or distributing a digital dollar. The provision marks a significant legislative curb on the central bank's ongoing research into digital currencies, which had drawn criticism from both sides of the aisle over concerns about surveillance and financial control.
The law's enactment reflects a rare bipartisan agreement on limiting the Fed's authority over digital currency, even as other central banks worldwide advance their own CBDC projects. By attaching the measure to a must-pass housing bill, lawmakers ensured its passage without a direct veto confrontation.