TechFlow News, April 8: According to a report by Decrypt, the White House Council of Economic Advisers (CEA) stated that banning stablecoin yield products would increase lending by community banks by only 0.026% (approximately $500 million), and total banking sector lending would rise by just 0.02%, while imposing a net welfare cost of $800 million. The report directly refutes the Independent Community Bankers of America’s (ICBA) warning that small banks would lose $1.3 trillion in deposits.
The report was released as the “Clarity Act”—legislation aimed at regulating stablecoin yields—remains stalled in Congress. Senator Cynthia Lummis stated that the bill is expected to enter the deliberation process in the second half of April and aims to complete passage before May.
