White House study finds stablecoin yield ban would fail to protect bank deposits

Consumers' ability to earn returns on digital cash would be limited by a ban on stablecoin yields. A White House economic study found little proof that stablecoin yield products currently threaten bank lending or deposits, concluding that such a prohibition would offer little or no real benefit to the stability of traditional funding. This finding undermines the argument from banks that return-bearing stablecoin products could drain funding and weaken the financial system. Lawmakers who support restrictions now require a better reason than bank protection to defend a prohibition. The Senate Banking Committee must now decide whether to move the CLARITY Act to a markup process.