White House Study Finds Banning Stablecoin Yield Would Increase Bank Lending by Just $2.1 Billion

A White House Council of Economic Advisers report published April 8 found banning stablecoin yield would increase bank lending by just $2.1 billion while costing consumers $800 million in lost returns.

White House Study Finds Banning Stablecoin Yield Would Increase Bank Lending by Just $2.1 Billion A White House Council of Economic Advisers report published April 8 found banning stablecoin yield would increase bank lending by just $2.1 billion while costing consumers $800 million in lost returns. Aaron Rafferty April 12, 2026 Key Takeaways: The White House Council of Economic Advisers published a 21-page analysis on April 8 concluding that eliminating stablecoin yield would increase bank lending by $2.1 billion, or 0.02% of total loans, and carry a net welfare cost of $800 million to consumers. Even under worst-case modeling assumptions, the CEA found the effect capped at $531 billion in additional lending, a 4.4% increase, and only under conditions the report described as "implausible." Paradigm launched a public GENIUS Act Implementation Tracker the same week, giving builders and regulators a live view of every rulemaking triggered by the law signed in July 2025. The White House Council of Economic Advisers published a paper on April 8 that directly challenges the core argument banks have used to stall the CLARITY Act. The report, titled "Effects of Stablecoin Yield Prohibition on Bank Lending," concluded the yield ban in the GENIUS Act "would do very little to protect bank lending" while costing consumers the benefit of competitive returns on stablecoin holdings. The model calibrated against Federal Reserve and FDIC data on deposits, lending, and bank liquidity. At baseline, eliminating stablecoin yield increased bank lending by $2.1 billion, a 0.02% gain across the system. Community banks, defined as institutions with assets below $10 billion, would see about $500 million of that, a 0.026% increase. The American Bankers Association has argued that allowing stablec