White House Council of Economic Advisers: Stablecoin Yields Will Not Threaten Small Banks

BlockBeats News, April 8th. The White House Council of Economic Advisers (CEA) released an analysis report pointing out that banning crypto companies from offering yield for stablecoins would have a minimal impact on small banks or community banks' deposit and loan business. Through economic model calculations, even with the ban in place, overall bank lending would only increase by 0.02%, about $21 billion, and community bank lending would increase by only 0.026%, about $5 billion. Even under a "worst-case" scenario assumption—where the stablecoin market size grows sixfold—community bank lending would only increase by 6.7%, about $129 billion, far below the banking industry's previous warnings of a "disastrous" $13 trillion deposit outflow and $850 billion loan reduction.

The report directly refuted the banking industry's lobbying group's concerns about stablecoin yield products, arguing that stablecoins do not pose a significant threat to traditional banks. Currently, the U.S. Congress's "Cryptocurrency Market Structure Act" (known as the CLARITY Act) regarding stablecoin regulation is deadlocked, with banking groups pushing for restrictions on stablecoin yield, while the crypto industry seeks a clear legal framework. The White House Council of Economic Advisers' conclusion could influence the upcoming legislative debate.