US Stablecoin Regulations and CLARITY Act

JUST IN: The White House Council of Economic Advisers has released its study on stablecoin yield and its potential impact on deposit flight and bank lending — the same report I noted last month that Senate Banking lawmakers were pressing the White House to release.

The TLDR:

JUST IN: White House releases study saying that banning stablecoin yield "would do very little to protect bank lending" and that concerns around bank deposit flight are exaggerated.

Bullish for the Bitcoin & crypto market structure bill!

CLARIY ACT: WHITE HOUSE ADVISERS REJECT BAN ON STABLECOIN YIELD

The White House Council of Economic Advisers has released a study concluding that a ban on stablecoin yield would fail to significantly boost bank lending while actively harming consumers.

Official data

NEW: White House Report Finds Stablecoin Yield Poses Limited Risk to Banks

New analysis based on current economic models suggests concerns over deposit flight may be overstated. Plus, @rstormsf heads back to court, @EvanWeb3 on the pod, and more.

UPDATE: Early reactions in banking circles suggest the White House report missed the mark, according to a banking source I spoke with.

The CEA analysis finds prohibiting stablecoin yield would do little to prevent deposit flight and only marginally increase lending.

But