White House report: "Prohibiting stablecoin yields" actually led to an increase of approximately $2.1 billion in bank loans, which is only about 0.02% of the total loan volume.

ME News Report, April 8 (UTC+8), according to the White House official website, the U.S. President has signed the GENIUS Act, requiring stablecoin issuers to be fully backed by high-quality assets at a minimum 1:1 ratio (such as USD, short-term U.S. Treasuries, repurchase agreements, money market funds, etc.), and prohibiting direct interest payments to coin holders. The White House Council of Economic Advisers’ model shows that, under baseline conditions, “banning stablecoin yields” actually increases bank lending by about $2.1 billion, which is only 0.02% of total lending, with a net welfare cost of approximately $800 million, where large banks contribute about 76% of the new loans and community banks about 24%. Even under extreme assumptions where all reserves are in non-lendable cash and the Federal Reserve abandons the current framework, the increase in bank lending is only about 4.4%. The report suggests that yield bans have minimal impact on protecting bank lending but will weaken the competitive benefits brought by stablecoins. (Source: PANews)