Summary
- President Trump announced he will not endorse a bipartisan housing bill that includes a temporary ban on a U.S. central bank digital currency (CBDC).
- The legislation is set to automatically become law tonight at midnight unless he opts to veto it.
- The White House has not confirmed if Trump will veto the bill before the deadline.
On Thursday, President Donald Trump declared he would not approve a bipartisan housing bill that features a multi-year prohibition on the creation of a U.S. central bank digital currency, referred to as a CBDC.
However, if the president does not actively veto the bill by midnight tonight, it will automatically take effect.
In a post on Truth Social, Trump stated, "I will not sign the housing bill," framing his decision as a "protest" against the Senate's failure to pass the SAVE America Act, a contentious piece of legislation aimed at limiting voting rights, which he has been advocating for several months. Republican leaders in Congress have indicated that the bill has minimal chances of passing.
Despite Trump’s decision not to sign the 21st Century ROAD to Housing Act, this does not necessarily mean the bill will be halted. According to the Constitution, if Congress passes a bill and the president does not sign it within 10 days, it automatically becomes law unless Congress adjourns. This 10-day period ends at midnight on Friday.
When contacted by Decrypt, a representative from the White House did not comment on whether Trump plans to veto the bill, instead referring to his post on Truth Social for further information.
If Trump does decide to formally veto the legislation before the deadline, it would go back to Congress, where lawmakers would need to achieve a two-thirds majority in both the House and Senate to override the veto. The bill previously passed both chambers with significant margins, receiving votes of 85-5 in the Senate and 358-32 in the House.
The 21st Century ROAD to Housing Act aims to enhance U.S. housing construction by reducing regulatory barriers. Additionally, it restricts institutional investors from acquiring residential properties. Earlier this year, lawmakers incorporated a clause that prevents the Federal Reserve from implementing a central bank digital currency until 2030.
The CBDC prohibition was positively received by advocates for cryptocurrency and privacy, who contend that a government-issued digital dollar may facilitate federal oversight of Americans' financial activities. Although the Federal Reserve is actively exploring the technology, it has consistently stated that it would not launch a CBDC without Congressional approval.