The White House Council of Economic Advisers published a report arguing that banning stablecoin yield would do little to protect bank lending — estimating only a $2.1 billion increase in bank lending under baseline assumptions — while imposing a net welfare cost to consumers. The report supports the crypto industry’s position in the ongoing debate over the Clarity Act and may complicate congressional efforts to close what banks have called a “loophole” allowing crypto exchanges to pay stablecoin rewards.
What you should do: The stablecoin regulatory picture is crystallizing quickly, with the OCC, FDIC, FinCEN, OFAC, and Treasury all active simultaneously. If your institution is exploring stablecoin issuance, review the full suite of proposals together. Capital, reserve, AML, and insurance implications are all interrelated. If you are not exploring issuance, the more pressing question remains deposit competition: the FDIC’s decision to exclude pass-through insurance for stablecoin holders is a meaningful win for traditional deposits, but yield-bearing stablecoin products at crypto exchanges remain a draw for rate-sensitive customers.
Report: https://www.whitehouse.gov/research/2026/04/effects-of-stablecoin-yield-prohibition-on-bank-lending/