🔥White House Economic Advisory Council: Stablecoin Yields Pose Limited Threat to Small Banks

On April 8, the White House Economic Advisory Council (CEA) released an analysis report indicating that banning crypto companies from offering yields on stablecoins has minimal impact on deposits and lending activities of small or community banks. Using economic models, even with the ban in place, overall bank loans would increase by only 0.02%, approximately $2.1B, while community bank loans would grow by 0.026%, about $500M. Under the "worst-case" scenario—where the stablecoin market size grows sixfold—community bank loans would only increase by 6.7%, roughly $129 billion, far below the "catastrophic" consequences warned by the banking industry of a $1.3 trillion deposit outflow and an $850 billion reduction in loans. The report directly refutes the banking industry's lobbying groups on…