A significant legislative development in the digital assets space is poised to take effect at midnight, Saturday, July 11, as a four-year ban on a U.S. central bank digital currency (CBDC) becomes law. The prohibition is part of a broader housing bill that was approved by Congress and subsequently sent to President Donald Trump, who has neither signed nor vetoed the legislation, according to a CoinDesk report on Friday, July 10.
Under U.S. law, if the President takes no action on a bill passed by Congress, it automatically becomes law at midnight following a 10-day period (excluding Sundays) after its receipt. This specific provision will prohibit the Federal Reserve from issuing a CBDC through the end of 2030.
While there has been no serious governmental effort to launch a CBDC, the crypto industry and a contingent of Republican lawmakers have long voiced strong opposition to any such potential development. The inclusion of the CBDC ban in the housing bill was highlighted by the House Financial Services Committee in a June 23 press release following the House’s passage of the legislation. The committee explicitly stated that “the bill includes a prohibition on the issuance of a Central Bank Digital Currency (CBDC) until December 31, 2030.”
Reports in June indicated that the CBDC ban was strategically added to the housing bill by Republican politicians. Their primary concern centers on the potential for government surveillance that a CBDC could enable. Furthermore, the clause was reportedly included to help secure crucial House Republican support for the bill’s overall passage.
The provision garnered support from key digital asset-focused groups when an earlier version of the housing bill was under consideration by the Senate in March. Cody Carbone, CEO of the Digital Chamber, emphasized the importance of financial privacy, stating, “Financial privacy is a cornerstone of American freedom, and any decision to authorize a Central Bank Digital Currency must remain with Congress and the American people.”
Echoing these sentiments, Summer Mersinger, CEO of the Blockchain Association, warned about the broader implications of a government-issued digital currency. Mersinger remarked, “A government-issued CBDC would threaten core American values — financial privacy, civil liberties and limits on state power — by giving the government unprecedented insight into (and potential leverage over) everyday transactions.” The Crypto Council for Innovation also weighed in, asserting that “Legislative certainty on this subject will help foster the private-sector innovation driving U.S. leadership in digital assets while protecting Americans’ privacy.”
This legislative move follows previous executive action on the matter. PYMNTS reported in January 2025 that President Trump had signed an executive order titled “Strengthening American Leadership in Digital Financial Technology.” This order, which addressed numerous concerns and desires of the crypto sector, notably included a provision prohibiting the development of a CBDC.
The formal enactment of this ban, even in the absence of an active push for a CBDC, underscores the enduring political and industry apprehension surrounding government-backed digital currencies and their potential impact on privacy and civil liberties within the United States financial system.
