White House Finds Stablecoin Yield Ban Adds Just 0.02% to Bank Lending

• White House says stablecoin yield ban would lift bank lending by just 0.02%.
• Report finds stablecoins shift deposits within the system, rather than draining liquidity from banks.
• Policymakers view stablecoins as part of finance, not a direct threat to bank lending.

A new report from the White House’s Council of Economic Advisers (CEA) found that banning yield on stablecoins would have only a marginal effect on traditional bank lending.

The report was published on April 8, 2026, via the official White House webpage. It directly challenges claims from banking groups that interest-bearing stablecoins could significantly drain deposits from the financial system.

Yield Ban Adds Just 0.02% to Bank Lending

At the center of the analysis is the GENIUS Act, signed into law in July 2025. The law requires stablecoins to be fully backed one-to-one with reserves and proh…

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