CLARITY Act Stablecoin Yield: White House CEA talk say e no too affect banks

White House Council of Economic Advisers (CEA) release analysis on April 9, 2026 sey if dem allow “stablecoin yield” under CLARITY Act e go only cause small displacement for US bank lending. CEA estimate say loan growth go about $2.1B (around 0.02%), wey dey contradict wetin banking industry dey talk about big deposit flight. Paper talk sey when consumers buy stablecoins, money dey usually route to Treasury bills and later dem redeposit am back into the banking system, so overall deposits remain largely unchanged. Even for extreme scenario where stablecoin demand grow sixfold, CEA project sey lending boost go small (capped for single digits), and dem call broader fear of big lending displacement "implausible". Policy context still be the main driver. The GENIUS Act wey pass July 2025 require 1:1 reserves and ban issuers from passing reserve yield to token holders, but e still allow exchanges to give rewards wey tie to stablecoin balances—way Coinbase don use before with USDC rewards. So the report don bring back the CLARITY Act yield debate wey affect USDC and yield-bearing stablecoin products. Coinbase legal chief Paul Grewal talk sey the findings dey weaken the "deposit flight" narrative. Report say White House arrange one bridge wey never formal yet with Senators Thom Tillis and Angela Alsobrooks to try unblock negotiations, but Senate Banking Committee timing still uncertain—so headline-driven volatility risk for USDC still dey.