U.S. banking industry questions White House stablecoin yield report, concerns over deposit outflows summary

The U.S. banking industry questions the White House's stablecoin yield report, arguing that the report overlooks the impact of stablecoins on deposit outflows, which could lead to increased financing costs and reduced local lending.
Currently, both sides are negotiating the Senate bill, with the prohibition of stablecoin interest payments becoming a contentious issue.
According to Gate News, on April 14, the U.S. banking industry questioned the White House's stablecoin yield report, claiming that the report's conclusions are based on incorrect policy focus.
A research report from the White House Council of Economic Advisers states that banning stablecoin yields would have a negligible effect on bank loans, increasing only about $2.1 billion in loans.
Sayee Srinivasan, Chief Economist, and Yikai Wang, Vice President, of the American Bankers Association, said the core policy concern should be whether allowing stablecoins to generate yields would prompt deposit outflows, especially from community banks to large institutions, thereby increasing financing costs and reducing local loans.
The American Bankers Association admits that the financial incentives of pursuing high-yield stablecoins will motivate households and businesses to move funds out of banks.
Currently, the crypto industry and banking sector are negotiating the terms of the Senate bill, with the prohibition of stablecoin interest payments being a key point of contention.