A White House report finds limiting stablecoin yields would increase bank lending by just $2.1 billion

A broad restriction on stablecoin yields would increase bank lending by just $2.1 billion, or 0.02%, according to a White House Council of Economic Advisers report released April 8, 2026. The finding undercuts a central argument from banking groups pushing for tight limits on yield-bearing stablecoins, who claim such rules are necessary to protect traditional deposit funding.

The report projects that 76% of the $2.1 billion in additional lending capacity would flow to large banks. Community banks would gain about $500 million. Even under higher-end assumptions favorable to the banking sector, total lending could rise by $531 billion—4.4% of projected loan volumes for late 2025—with community banks seeing gains of up to 6.7%.

The analysis enters a heated debate delaying the CLARITY Act, Congress’s latest effort to establish a federal regulatory framework for digital assets. Banking groups support restricting stablecoin yield offerings, arguing that unregulated returns on digital assets threaten the stability of traditional bank deposits. Crypto firms oppose broad restrictions, insisting that rules should align with existing stablecoin regulations and not extend to non-issuers offering reward-like returns.

Treasury Secretary Scott Bessent has urged lawmakers to finalize the legislation, warning that regulatory uncertainty is slowing domestic crypto innovation. SEC Chair Paul Atkins confirmed the agency is ready to implement the framework, saying, “Project Crypto is designed so once Congress acts, agencies are ready.” Ripple CEO Brad Garlinghouse echoed the call, posting “Progress > Perfection” on X in support of advancing the bill.

The House passed its version in July 2025, but disagreements over stablecoin provisions have stalled further movement. The White House report concludes that yield restrictions would offer limited protection to banks while potentially reducing consumer access to higher-yielding digital asset products.