Summary
- President Trump has declined to sign a significant housing bill that includes a prohibition on a U.S. central bank digital currency.
- He stated that he views the bill as “of minor importance.”
- Trump indicated he would withhold his signature until Congress passes a controversial voting rights bill, which is unlikely to succeed.
On Wednesday, President Donald Trump unexpectedly canceled a signing ceremony for a comprehensive bipartisan housing bill that includes a ban on the U.S. government establishing a central bank digital currency (CBDC) until 2031.
The legislation, known as the 21st Century ROAD to Housing Act, is notable for receiving strong backing from both sides of the political aisle. It aims to reduce restrictions on new home construction throughout the nation and also seeks to prevent major financial firms from acquiring a substantial portion of the housing market.
The Senate approved the bill with an 85-5 vote on Monday, followed closely by the House, which passed it with a 358-32 vote.
Earlier this year, advocates for cryptocurrency and privacy incorporated a provision in the bill that temporarily prohibits the Federal Reserve from creating a CBDC, which is a digital currency supported by the U.S. government. This ban on digital dollars is set to last until the end of 2030.
While countries like the European Union are moving forward with plans for their own CBDCs, conservative factions in the U.S. have criticized the proposed American version, arguing that it could enable the government to monitor citizens' private financial transactions.
The ban was anticipated to take effect immediately, with Trump scheduled to formally sign the housing bill during a prominent ceremony at the U.S. Capitol.
However, just hours before the event, Trump decided to cancel it, calling the legislation “of minor importance,” and stated he would not sign it until Congress approves another bill, the SAVE America Act. This contentious bill, which Trump has supported for several months, would significantly limit voting rights in the U.S., and Republican leaders have repeatedly pointed out that it has little chance of passing.
Should Trump choose to veto the housing legislation, Congress would need to reauthorize it with a two-thirds supermajority in both the House and Senate to override his decision. The bill had initially received enough support to meet that requirement, but it remains uncertain whether the situation will change following Trump’s recent actions.
The decision to cancel the signing ceremony appears to have been made at the last minute. A stage had already been set up at the Capitol, and just moments before Trump’s announcement, his team was highlighting the bill's positive effects online.