Stablecoin Yield Ban Minimal Impact

White House economists say banning stablecoin yield would add little to bank lending while imposing significant costs on users. A report by the Council of Economic Advisers found that banning yield on stablecoins would boost community bank lending by just 0.02%, or $500 million. This marginal impact is due to the fact that moving funds from stablecoins back into bank deposits would not translate into significant new lending. The findings contradict warnings from banking organizations, including the Independent Community Bankers of America, that stablecoin yields could significantly reduce bank lending. In reality, the report estimates a net welfare loss of around $800 million per year if stablecoin rewards are banned, mainly because users would lose access to yield on stablecoins. A formal review of the report's findings is expected in the coming weeks, with lawmakers set to debate the CLARITY Act 2026 in April. If the act is not passed before then, executives warn that the odds of its passage are 'extremely low', leaving the crypto industry in limbo.