Key Takeaways:
White House analysis finds stablecoin yield ban lifts lending by only 0.02%, indicating limited real-world impact. Analysis shows only about 12% of reserves could be constrained under full-reserve treatment, limiting lending effects. Council of Economic Advisers finds yield ban welfare gains require implausible assumptions to turn positive. White House Analysis Challenges Stablecoin Deposit Outflow Concerns Extreme Modeling Assumptions Weaken Case for Yield RestrictionsThe report concluded:
“It takes similarly implausible assumptions for the welfare effect of yield prohibition to turn positive.”
