White House report: "Prohibiting stablecoin yields" actually led to an increase of about $2.1 billion in bank loans, which is only 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 least 1:1 (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 loans by about $2.1 billion, which is only 0.02% of total loans, 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 such as all reserves being non-lendable cash and the Federal Reserve abandoning the current framework, the increase in bank loans is only about 4.4%. The report suggests that the yield ban has minimal impact on protecting bank lending but would weaken the competitive benefits brought by stablecoins. (Source: PANews)