U.S. CBDC Development Blocked Until 2031 as Housing Bill Becomes Law

How the Ban Takes Effect

The housing bill will automatically become law at midnight without President Trump's signature, according to reporting from both Decrypt and CoinDesk. Under U.S. law, legislation becomes binding if the president neither signs nor vetoes it within 10 days of receiving it. Trump has declined to sign the bill but has not formally vetoed it, allowing the pocket veto period to expire and the measure to pass into law.

What the CBDC Restriction Includes

The bill imposes a temporary prohibition on the Federal Reserve developing a central bank digital currency, lasting until 2031. The restriction is part of a broader bipartisan housing package, meaning it passed with support from both Republican and Democratic lawmakers. The measure does not outright eliminate the possibility of a U.S. digital dollar, but it creates a nine-year window during which the Fed is barred from launching such a system.

Legislative Path and Political Context

The bill's passage without a presidential signature represents a rare instance of Congress enacting legislation despite executive opposition. Trump's decision not to formally veto the measure — which would have forced a veto override vote — allowed the automatic passage mechanism to proceed. The CBDC restriction reflects ongoing bipartisan skepticism about the Fed's authority to unilaterally develop a digital currency without explicit congressional approval.