White House Says Banning Stablecoin Yield Would Hurt Consumers More Than It Helps Banks
By Micah Zimmerman
The White House Council of Economic Advisers modeled the GENIUS Act's ban on stablecoin yields and found it would increase bank lending by only $2.1 billion (0.02% of total loans), while consumers would lose $800 million in forgone returns—a cost-benefit ratio of 6.6. Stablecoin reserves are primarily reinvested in Treasury bills, repos, and money-market funds, recirculating funds back into the banking system with minimal net deposit loss. This analysis counters arguments for the yield prohibition aimed at protecting community banks.
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