A White House analysis reveals that prohibiting stablecoin yields would yield negligible benefits for bank lending while imposing significant costs on users. The Council of Economic Advisers' report estimates just $2.1 billion in additional bank lending—a mere 0.02% of the $12 trillion U.S. loan market.
Community banks would see even smaller gains, with projected loan growth of only $500 million. Meanwhile, the policy would create an estimated $800 million annual welfare loss by depriving users of yield opportunities. Crypto advocates challenge claims that stablecoins meaningfully reduce bank deposits, calling into question the rationale for restrictive measures.
Log in to Reply
Log in to comment your thoughtsComments