Even though President Donald Trump chose not to sign the bipartisan housing bill approved by Congress, it is still set to automatically become law at midnight—carrying with it a temporary ban on a U.S. central bank digital currency (CBDC).

This outcome aligns with the crypto industry’s long-standing opposition to a government-issued digital dollar, as the legislation effectively blocks such efforts for now.

The measure prohibits the Federal Reserve from launching a digital dollar for the next four years. Republican lawmakers have argued that a CBDC could create risks of excessive government surveillance, even though there has been no serious push in the U.S. to introduce one. The restriction was included within the broader housing-affordability bill that Trump declined to approve.

In a post on Truth Social, Trump explained his decision as a protest against the United States Senate for failing to pass the “SAVE AMERICA Act.”

However, under the United States Constitution, a bill becomes law if the president neither signs nor vetoes it within a 10-day period. Since Trump did not issue a veto, the legislation will take effect automatically at midnight.

The CBDC restriction will remain in place until the end of 2030, though the likelihood of the Fed rolling out a digital dollar within that timeframe was already considered low. Even before the appointment of Fed Chair Kevin Warsh, officials had consistently stated that such a move would require support from both the White House and Congress—support that has yet to materialize.

While the crypto sector has resisted CBDCs due to concerns they could compete with privately issued stablecoins, other regions such as Europe and China have continued advancing their own digital currency initiatives. In the U.S., the issue has become increasingly politicized, with Republicans inserting the CBDC restriction into unrelated legislation after earlier attempts to attach it to measures like the Foreign Intelligence Surveillance Act.

Despite the housing bill’s overall popularity, Trump made a last-minute decision to oppose it—even after preparations for a signing ceremony had begun. He stated that he would not approve any legislation until Congress passes stricter voter identification measures, including proof-of-citizenship requirements, which currently lack sufficient support.

Trump has warned that failing to enact such measures could hurt Republicans in upcoming midterm elections, where Democrats are expected to perform strongly. His position has also raised uncertainty about other pending legislation, including the Digital Asset Market Clarity Act, which could face a similar fate if it reaches his desk later this year.