Bank Lobby Fires Back at White House, Saying Stablecoin Study Ignores Community Bank Threat
By Micah Zimmerman
The White House's Council of Economic Advisers released a study modeling that barring yield on payment stablecoins would increase bank lending by only $2.1 billion (0.02% of loans) while costing consumers $800 million in returns. The American Bankers Association criticized the analysis for focusing on a yield ban instead of the risks of scaled yield-paying stablecoins, which could drain deposits from community banks in a $1-2 trillion market. This debate ties to the GENIUS Act's prohibition on interest for payment stablecoins.
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