The U.S. banking industry questions the White House's report on stablecoin yields

Mars Finance News: The U.S. banking industry has questioned the stablecoin yield report released by the White House, saying the report’s conclusions are based on incorrect issues. A research report from the White House Council of Economic Advisers states that banning stablecoin yields will have a negligible impact on bank lending, and can only increase loans by about $2.1 billion. Sayee Srinivasan, Chief Economist, and Yikai Wang, Vice President, of the American Bankers Association, said the core policy focus is whether allowing stablecoins to generate yields will cause deposit outflows—especially from community banks to large institutions—thereby increasing financing costs and reducing local lending. The American Bankers Association acknowledged that the financial incentives of pursuing high-yield stablecoins will prompt households and businesses to move funds out of banks. Currently, the crypto and banking industries are negotiating the terms of a Senate bill, and a key point of contention is a ban on interest payments on stablecoins.