White House Says Banning Stablecoin Yield Would Hurt Consumers More Than It Helps Banks
Bitcoin Magazine
A White House economic report concludes that banning stablecoin yields provides minimal benefits to banks while harming consumers through lost competitive returns.Summary
The White House Council of Economic Advisers (CEA) has challenged the rationale behind banning stablecoin yields, a restriction established by the 2025 GENIUS Act. The CEA's model reveals that prohibiting these yields offers negligible protection for bank lending, with an estimated benefit of only $2.1 billion against a $12 trillion loan book. Conversely, the policy causes significant harm to consumers, who lose more in potential returns than borrowers gain, resulting in a cost-benefit ratio of 6.6. The report emphasizes that because stablecoin reserves are primarily reinvested in Treasury bills and money-market funds, the liquidity remains within the financial system rather than disappearing.
(Source：Bitcoin Magazine)