A White House Council of Economic Advisers study released Wednesday concludes that banning stablecoin yield would have minimal impact on bank lending and would harm consumers.
The White House Council of Economic Advisers released a study Wednesday examining stablecoin yield and its impact on deposit flight and bank lending. The report finds that eliminating stablecoin yield would increase bank lending by just 0.02%—approximately $2.1 billion—while resulting in a net welfare loss to consumers. The findings directly contradict concerns from some Senate Banking lawmakers who had pressed the White House to release the report.
The report concludes that deposit flight concerns related to stablecoin yield are “quantitatively small,” noting that most stablecoin reserves remain within the banking system with only a limited share removed from lending activity. The executive summary states: “a yield prohibition would do very little to protect bank lending, while forgoing the consumer benefits of competitive returns on stablecoin holdings.”
Sources: White House
This article was generated automatically by The Defiant’s AI news system from publicly available sources.
