The White House Council of Economic Advisers (CEA) has released a report indicating that a complete ban on stablecoin yields would result in only a $2.1 billion increase in total U.S. bank loans, representing a mere 0.02% of the overall loan market. The report highlights that such a ban would lead to an annual net welfare loss of approximately $800 million for U.S. consumers.
The CEA report also notes that about 88% of major stablecoin issuers' reserves are allocated in U.S. Treasuries and repos, suggesting that most funds remain within the financial system. Even under the most extreme assumptions, the potential increase in bank loans would be capped at $531 billion, or 4.4% of total loans. The report refutes previous predictions that competitive stablecoin yields could result in a $1.5 trillion loss in loans.
White House Report: Stablecoin Ban Would Have Minimal Impact on U.S. Loans
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