The U.S. White House Council of Economic Advisers released a report on stablecoin yields, with limited impact on bank loans.

ME News report: On April 8 (UTC+8), the U.S. White House Council of Economic Advisers released a report titled “The Impact of Stablecoin Yield Bans on Bank Lending.” The report states that, in the baseline calibration of the CEA model, after excluding stablecoin yields, bank loans increase by $2.1 billion, with a net welfare cost of $800 million. This corresponds to a 0.02% increase in loans, and the cost-benefit ratio is 6.6. Large banks will bear 76% of this additional lending, while community banks with assets below $10 billion will bear the remaining 24%. According to baseline forecasts, this will result in community banks taking on an additional $500 million in loans, which means their loan volume will grow by 0.026%. Even if all the worst-case assumptions are stacked together, the model can only predict an increase of $531 billion in total bank loan balances by Q4 2025, equivalent to a 4.4% growth in bank loans. To reach this figure, the ratio of stablecoin market size to deposits would need to grow to about six times the current level, all reserves would need to be locked up as non-lendable cash rather than government bonds, and the Federal Reserve would need to abandon its current monetary policy framework. Even under these unlikely conditions, community bank loans would only increase by $129 billion, equivalent to a 6.7% growth rate. Likewise, the conditions under which banning yields would produce positive welfare effects are also difficult to achieve. In short, banning yields has a negligible role in protecting bank lending, and it would also cause consumers to lose the competitive returns from holding stablecoins. (Source: Foresight News)