Congress passed a housing package on June 22 that includes a four-year prohibition on the Federal Reserve issuing a central bank digital currency, effectively preventing a retail CBDC until at least the end of 2030. The legislation also contains a four-year ban on a Fed‑issued digital dollar, which had not yet been scheduled for launch. The ban was included in a bill that cleared the Senate 85‑5 and the House 358‑32. Private stablecoin issuers such as Circle and Tether, which together account for more than 80 % of the roughly $320 billion stablecoin market, benefit from the restriction because a government‑backed digital dollar would have competed directly with their offerings. Meanwhile, a consortium of large banks, coordinated through The Clearing House, is developing a tokenized deposit network that could provide many of the same functions as stablecoins while keeping deposits on bank balance sheets. The network is slated for a 2027 launch, though no blockchain vendor has been selected and early adoption is expected to be limited to large corporate users. The Federal Reserve had previously conducted limited research and a pilot in Boston but had not moved toward a public CBDC. The provision removes a theoretical competitor, but the real competition is expected to arise between stablecoins and the bank‑based tokenized deposits. Stablecoin issuers have secured regulatory clarity through the GENIUS Act, which requires one‑to‑one reserves and monthly disclosures, while the ban preserves that framework. Banking groups have warned that unrestricted digital money could shift up to $6.6 trillion in deposits out of the traditional banking system, potentially reducing lending capacity. The political context includes statements from former Fed Chair Kevin Warsh calling a CBDC a “bad policy choice,” Treasury Secretary Scott Bessent saying a digital dollar is “off the table,” and an executive order by former President Donald Trump in January 2025 opposing a CBDC. President Trump delayed the planned signing ceremony on June 24, linking it to another voting bill, though House leaders expect the housing package to be signed shortly thereafter.