President Donald Trump has refused to sign Congress’ bipartisan housing affordability bill, freezing a four-year ban on the Federal Reserve’s digital dollar.
The president’s rejection also puts the long-awaited central bank digital currency ban and the CLARITY Act on hold, raising questions about whether the bills will pass before the Senate recesses in the summer.
Trump cancels signing the housing bill
Trump posted on Truth Social that a planned signing ceremony for a bipartisan housing affordability bill in Congress has been “canceled” until the “much needed” Rescue America Act is passed.
He stated that he considered the bill to be a national emergency.
The SAVE America Act would impose new proof of citizenship and photo ID requirements on voters in federal elections. The bill stalled in the Senate due to insufficient Republican support.
The Path to 21st Century Housing Act passed both chambers by overwhelming margins this week, with White House press secretary Carolyn Leavitt recently calling it “one of the most important pieces of housing affordability legislation in American history.”
Within the housing bill is a provision prohibiting the Federal Reserve from issuing, creating, or distributing a central bank digital currency (CBDC) until at least December 31, 2030. The cryptocurrency industry has supported the CBDC ban because it is consistent with Trump’s previous executive order from January 2025, preventing the government from creating its own digital currency.
House Speaker Mike Johnson has He defended Trump’s refusal to signHe told reporters he was simply using “a little more” of the time he had before signing the bill. Johnson said he expected Trump to sign within the constitutionally specified 10-day period.
However, one Republican in the House did not provide his name Text message NBC News That the president’s decision was “crazy crazy.”
Is the CBDC ban still in place?
Republican politicians have framed the Federal Reserve’s digital dollar as a surveillance tool that could allow the government to monitor citizens’ financial activity. Cryptopolitan I mentioned previously Representative Tom Emmer, who pushed for the ban, previously described central bank digital currencies as a “weaponized surveillance tool.”
The provision to ban central bank digital currencies (CBDC) was added to the housing package after Senate Banking Chairman Tim Scott negotiated with Ranking Member Elizabeth Warren and coordinated with House Financial Services members from both parties, earlier. Reporting by Cryptopolitan.
Without Trump’s signature, the ban remains in procedural limbo along with the rest of the housing bill.
However, the bill passed by margins large enough to survive a veto in both chambers by 358 votes to 32 in the House and 85 to 5 in the Senate.
Senate Minority Leader Chuck Schumer told reporters that Congress could invalidate the order if Trump ultimately refuses to sign. Under the Constitution, the bill could become law without Trump’s signature after 10 days if Congress remains in session.
Could the CLARITY Act still pass this year?
The cryptocurrency industry is also concerned about the impact of the prolonged standoff on digital asset market clarity law. The Senate calendar has nearly five weeks before summer recess, and the bill still needs to get through remaining negotiations and reach a vote.
If Republican lawmakers redirect their focus toward the Save America Act at Trump’s request, that could squeeze the legislative bandwidth for everything else.
The Save America Act does not have a viable path to becoming law, Jarrett Seberg, a policy analyst at TD Cowen, wrote in a research note on Wednesday.
“Senate GOP would need to abolish the filibuster, a move they have already rejected,” Seberg wrote. Aside from filibuster, the bill has not yet received the support of 50 senators.
Meanwhile, a group of House Republicans led by Rep. Ana Paulina Luna has pledged to block votes on other legislation until the SAVES Act is passed, NBC News reported.
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