White House: yields from stablecoin no go boost bank lending for US
Di White House Council of Economic Advisers talk say stablecoin yields no too get power to affect US bank lending or the bigger credit situation. Dem report talk say if dem restrict interest-bearing stablecoin products e go just add about $2.1 billion to total credit (about 0.02% of the $12T loan market) and e go give net loss to consumers.
Banking industry groups no gree. Independent Community Bankers of America warn say yield-bearing stablecoins fit make banks lose up to $1.3T deposits and fit reduce lending by as much as $850B, dem dey argue say stablecoins fit comot funding from banks.
White House answer with how reserves dey flow: most stablecoin reserves dey already inside the banking system and dem dey usually rotate through US Treasury bills and deposits. E estimate say about 12% of reserves dey outside banking so dem no fit turn am into loans. Overall, White House conclusion be say banning stablecoin yields no go "safeguard bank lending," e go mainly limit wetin stablecoin holders fit earn.
Regulatory movement still dey. GENIUS Act (signed July 2025) require 1:1 reserves and e bar issuers from directly paying yields; FDIC don propose oversight framework; and CLARITY Act dey near final stages.
Neutral
Di torys tok na, e get to do wit di fiscal/credit impact wey go come if dem restrict stablecoin yields, no be say dem dey change how stablecoin reserves take de back or any price-targeting mechanics. White House dey talk say stablecoin yields no go really make US banks give more loans, but industry groups dey warn say e fit cause big deposit and lending losses. Dis split mean say di policy debate go likely just affect product economics (how much yield exchanges and platforms go fit market) rather than make stablecoin prices move sharp sharp. Traders fit do short-term positioning around regulatory headlines, but di overall effect on stablecoin pricing itself likely small, so di expected impact stay neutral.