The new housing bill is poised to become law at midnight, unless President Trump chooses to veto it. Its key provision bars the Federal Reserve from developing a central‑bank digital currency until 2031, effectively locking the U.S. out of the growing global CBDC race for a decade. This legislative move is one of the most concrete examples of how U.S. policy is still grappling with the rise of digital money.
For everyday crypto holders, the ban is a double‑edged sword. On one hand, it removes a potential competitor that could offer a state‑backed digital payment system, which might otherwise crowd out private cryptocurrencies. On the other hand, it keeps the spotlight on non‑centralised digital assets, potentially sustaining demand for Bitcoin, Ethereum, and other tokens. In the current market, fear is running high—Bitcoin and Ethereum are only modestly up, but the overall sentiment remains cautious.
The next few hours will be telling. If Trump signs the bill, the Fed will be forced to look elsewhere for digital money solutions, possibly accelerating private‑sector initiatives. If he vetoes it, the Fed could still pursue a CBDC, and the regulatory landscape could shift dramatically. Retail investors should keep an eye on the Fed’s announcements, any changes in the Treasury’s stance, and how these developments might influence the broader crypto ecosystem.